Some Baldwin Insurance Group, Inc. (NASDAQ:BWIN) shareholders may be a little concerned because insider James Roche recently sold $3.9 million worth of stock at a price of $41.48 per share. This sale reduced their total holdings by 17%, which is not insignificant, but far from the worst we’ve seen.

Check out our latest analysis for Baldwin Insurance Group

Baldwin Insurance Group Insider Transactions in the Last Year

In fact, according to our records, James Roche’s recent sale was the largest sale of Baldwin Insurance Group shares by an insider in the last twelve months. This means that an insider sold shares below the current price ($42.25). We generally view it as a negative when insiders have sold, particularly if they did so below the current price, as it implies that they thought a lower price was appropriate. While insider selling is sometimes discouraging, it is only a weak signal. It is worth noting that this sale only involved 17% of James Roche’s holding.

Encouragingly, we note that insiders paid $300k for 15k shares last year. But insiders sold 413,600 shares valued at $13m. Over the last year, we observed more insider sales of Baldwin Insurance Group shares than purchases. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much and when, just click on the chart below!

I’ll like Baldwin Insurance Group better if I see some big insider buying. While we wait, check this out free List of undervalued stocks and small cap stocks with significant recent insider buying.

Insider ownership

For a common shareholder, it’s worth checking how many shares are held by company insiders. Typically, we like to see a relatively high level of insider ownership. It’s great to see that Baldwin Insurance Group insiders own 5.5% of the company, worth about $270 million. I like to see this level of insider ownership because it increases the likelihood that management has shareholders’ interests in mind.

What could insider transactions at Baldwin Insurance Group tell us?

Insiders have not bought any Baldwin Insurance Group shares in the last three months, but there has been some selling. When we look a little closer at the picture, the long-term picture is not very reassuring. The company boasts high insider ownership, but given the history of share sales, we are a little hesitant. While it is helpful to know what insiders are doing in terms of buying or selling, it is also helpful to know what risks a particular company faces. Every company has risks, and we have found 1 warning signal for Baldwin Insurance Group You should know about this.

If you would rather check out another company — one with potentially better financials — then don’t miss this free List of interesting companies with HIGH return on equity and low debt.

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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