Anyone interested in Greenlight Capital Re, Ltd. (NASDAQ:GLRE) should probably be aware that the Chief Operating Officer, Patrick O'Brien, recently divested US$267k worth of shares in the company, at an average price of US$13.33 each. The eyebrow raising move amounted to a reduction of 12% in their holding.
Our free stock report includes 2 warning signs investors should be aware of before investing in Greenlight Capital Re. Read for free now.Greenlight Capital Re Insider Transactions Over The Last Year
Notably, that recent sale by Patrick O'Brien is the biggest insider sale of Greenlight Capital Re shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$13.58. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 12% of Patrick O'Brien's holding.
Insiders in Greenlight Capital Re didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for Greenlight Capital Re
I will like Greenlight Capital Re better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 10% of Greenlight Capital Re shares, worth about US$47m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Greenlight Capital Re Insider Transactions Indicate?
Insiders haven't bought Greenlight Capital Re stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 2 warning signs for Greenlight Capital Re and we suggest you have a look.
Of course Greenlight Capital Re 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.