Primerica, Inc. (NYSE:PRI) shareholders may have concerns after CEO & Director Glenn Williams sold about US$668k worth of shares at an average price of US$223. However, it’s important to note that Williams still holds a significant portion of the stock, with the recent sale reducing their stake by only 5.8%. This sale follows a previous one earlier in the year, where Williams sold shares at a higher price of US$247 per share.
While insider selling can be concerning, the fact that the recent sale was above the current market price of US$221 may not indicate a lack of confidence at current levels. It’s also worth noting that Primerica insiders have not purchased any shares in the past year.
Insiders currently own 0.5% of Primerica shares, valued at around US$42 million. While this level of insider ownership is decent, it may not be particularly noteworthy in terms of alignment with shareholders.
In terms of insider transactions, there have been no recent insider purchases in the last three months. However, given Primerica’s profitability and growth, the lack of insider buying may not be a major cause for concern. Despite insider ownership and profitability, caution is advised due to the history of insider sales.
It’s always important to consider the risks associated with investing in a company. In the case of Primerica, there are 2 warning signs that investors should be aware of. While Primerica may not be the top choice for investment, there are other companies worth exploring.
In conclusion, while insider transactions can provide valuable insights, it’s essential to conduct thorough research and consider all factors before making investment decisions. Investors should assess the overall financial health, risks, and potential of a company before deciding to buy or sell any stock.