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In the last year, many American International Group, Inc. (NYSE:AIG) insiders sold a substantial stake in the company which may have sparked shareholders' attention. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
American International Group Insider Transactions Over The Last Year
In fact, the recent sale by Claude Wade was the biggest sale of American International Group shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$82.41. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
Happily, we note that in the last year insiders paid US$872k for 11.33k shares. On the other hand they divested 46.85k shares, for US$3.9m. All up, insiders sold more shares in American International Group than they bought, over 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 the share price, individual, and the date!
Check out our latest analysis for American International Group
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
American International Group Insiders Are Selling The Stock
There was substantially more insider selling, than buying, of American International Group shares over the last three months. In that time, insiders dumped US$3.9m worth of shares. Meanwhile insiders bought US$821k worth. Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the shares are not cheap.
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. American International Group insiders own 0.3% of the company, currently worth about US$148m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.