Potential James River Group Holdings, Ltd. (NASDAQ: JRVR) Shareholders may wish to note that independent director Sundar Srinivasan recently purchased US$254,000 worth of shares, paying US$20.32 for each share. This certainly has us anticipating the best, especially since they’ve increased their own stake to 217% as a result, potentially signaling real optimism.
Check out our latest analysis for James River Group Holdings
The last 12 months of insider trading at James River Group Holdings
Notably, this recent purchase by Sundar Srinivasan is the largest insider purchase of James River Group Holdings stock we have seen in the past year. So clearly an insider wanted to buy, roughly at the current price, which is US$20.74. Although their perspective has changed since the purchase, it at least suggests that they have confidence in the future of the company. While we always like to see insider buys, it makes less sense if the buys were made at much lower prices, as the opportunity they saw may have passed. The good news for James River Group Holdings shareholders is that insiders were buying at a price close to the current price.
James River Group Holdings insiders may have bought shares in the past year, but they haven’t sold any. You can see a visual representation of insider trading (by companies and individuals) over the past 12 months, below. By clicking on the graph below, you will be able to see the precise detail of each insider trade!
There are many other companies whose insiders buy shares. You probably do do not want to miss this free list of growing companies insiders are buying.
Does James River Group Holdings boast of high insider ownership?
For an ordinary shareholder, it is worth checking how many shares are held by company insiders. High insider participation often makes company management more concerned with the interests of shareholders. James River Group Holdings insiders appear to own 2.9% of the company, worth approximately $22 million. We have certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest an alignment between insiders and other shareholders.
So what does this data suggest about James River Group Holdings insiders?
Recent insider buying is encouraging. We also rely on the longer-term picture of insider trading. However, we note that the company has not made a profit in the last twelve months, which makes us cautious. Given that insiders also own a good chunk of James River Group Holdings, we think they’re probably pretty confident of a bright future. So these insider trades can help us build a thesis on the stock, but it’s also helpful to know the risks this company faces. In terms of investment risks, we have identified 2 warning signs with James River Group Holdings and understanding them should be part of your investment process.
Sure James River Group Holdings may not be the best stock to buy. So you might want to see this free set of high quality companies.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.