Last year, many The Travelers Companies, Inc. (NYSE:TRV) insiders have sold a significant stake in the company, which may have caught the attention of shareholders. When evaluating insider transactions, it is usually more helpful to know if insiders are buying than if they are selling, as the latter is open to many interpretations. However, if multiple insiders are selling shares over a period of time, shareholders should take notice, as this could potentially be a warning sign.

Although insider transactions are not the most important thing in long-term investing, we think it is perfectly logical to keep an eye on insider activities.

Check out our latest analysis for Travelers Companies

The last 12 months of insider transactions at travel companies

The largest single sale by an insider in the last twelve months was when Gregory Toczydlowski, Executive VP & President of Business Insurance, sold US$2.0m worth of shares at a price of US$215 per share. That means an insider sold shares at around the current price of US$214. While we don’t usually like to see insider selling, it is more worrying when the sales occur at a lower price. Given that the sale occurred at around the current price, that makes us somewhat cautious, but it is hardly a cause for concern.

Insiders in Travelers Companies have not purchased any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including share price, individual, and date!

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Insider ownership of Travelers companies

I like to look at how many shares insiders own in a company to get an idea of ​​how well they work with insiders. Typically, we like to see a relatively high level of insider ownership. Travelers Companies insiders own 0.4% of the company, which is currently worth about $192 million based on the current share price. I like to see this level of insider ownership because it increases the likelihood that management has shareholders’ interests in mind.

So what do the insider transactions at Travelers Companies mean?

The fact that there have been no insider transactions at Travelers Companies recently certainly doesn’t bother us. It’s encouraging that insiders own a lot of shares, but we would like to see more insider buying as we’re not confident about insider transactions at Travelers Companies over the last year, so this is definitely something to check out. FREE Report with analyst forecasts for Travelers Companies.

Naturally, If you look elsewhere, you may find a fantastic investment. So take a look at the free List of interesting companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulator. Currently, we only consider open market transactions and private disposals of direct holdings, but not derivative transactions or indirect holdings.

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This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.