We wouldn't blame Arthur J. Gallagher & Co. (NYSE:AJG) shareholders if they were a little worried about the fact that Richard Cary, the Chief Accounting Officer & Controller recently netted about US$4.1m selling shares at an average price of US$340. That's a big disposal, and it decreased their holding size by 16%, which is notable but not too bad.
We've discovered 3 warning signs about Arthur J. Gallagher. View them for free.Arthur J. Gallagher Insider Transactions Over The Last Year
Notably, that recent sale by Richard Cary is the biggest insider sale of Arthur J. Gallagher shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$338. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
Over the last year we saw more insider selling of Arthur J. Gallagher shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for Arthur J. Gallagher
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Does Arthur J. Gallagher Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Arthur J. Gallagher insiders own about US$900m worth of shares (which is 1.0% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Arthur J. Gallagher Insider Transactions Indicate?
Insiders sold Arthur J. Gallagher shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. But since Arthur J. Gallagher is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Arthur J. Gallagher. For example - Arthur J. Gallagher has 3 warning signs we think you should be aware of.
Of course Arthur J. Gallagher may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.