We wouldn't blame RenaissanceRe Holdings Ltd. (NYSE:RNR) shareholders if they were a little worried about the fact that James Fraser, the Senior VP & Chief Accounting Officer recently netted about US$3.5m selling shares at an average price of US$251. That diminished their holding by a very significant 51%, which arguably implies a strong desire to reallocate capital.
Our free stock report includes 2 warning signs investors should be aware of before investing in RenaissanceRe Holdings. Read for free now.RenaissanceRe Holdings Insider Transactions Over The Last Year
Notably, that recent sale by James Fraser is the biggest insider sale of RenaissanceRe Holdings shares that we've seen in the last year. That means that an insider was selling shares at below the current price (US$252). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was 51% of James Fraser's stake.
RenaissanceRe Holdings insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Check out our latest analysis for RenaissanceRe Holdings
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Insider Ownership Of RenaissanceRe Holdings
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that RenaissanceRe Holdings insiders own 2.1% of the company, worth about US$254m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About RenaissanceRe Holdings Insiders?
An insider hasn't bought RenaissanceRe Holdings stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 2 warning signs for RenaissanceRe Holdings you should know about.
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For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.