Insider Trends in the Financial Services Sector
Financial Services Insider Buy/Sell Ratio vs. Sector ETF Performance:
Monthly CEO Buy/Sell Ratio vs. Sector ETF Performance:
The following companies represent the largest insider transactions (not including 10% owners) in the financial services sector over the past week.
Significant Insider Buys:
American International Group (AIG)
Director William Jurgensen made the priciest insider buy of the week by adding 10,000 shares priced at $45.20 per share. This transaction cost the director $452,000. Since his buy the price per share of AIG has decreased 1.06%.
This insider buy marks the first insider transaction in 2013.
American International Group is a holding company which, through its subsidiaries, is engaged in a range of insurance and insurance-related activities in the U.S and abroad. The company’s four reportable segments are as follows: General Insurance, Domestic Life Insurance & Retirement Services, Foreign Life Insurance and Retirement Services and Financial Services.
Some things to note:
· The company’s per share revenue has been in decline for the past 5 years.
· American International’s P/S ratio is close to a 10-year high of 1.14.
· Their equity to asset ratio is 17.86%.
· In the past year the company has seen 0.8% earnings growth.
American International has a market cap of $66.65 billion; its shares were traded at around $44.49 with a P/E ratio of 11.00 and a P/S ratio of 1.10.
FNB United Corp (FNBN)
In the past week FNB United reported five insider buys coming from four different insiders. These insiders consisted of: CEO Brian Simpson, Executive VP and General Counsel Beth DeSimone, Director Louis Schmitt and President Robert Reid.
These four insiders bought a total of 15,688 shares in the price range of $7.14 to $8.28 per share. The insiders spent a total of $119,055 on these buys.
FNB United is a bank holding company for CommunityOne and Bank of Granite which provide consumer wealth management, mortgage services and business banking services to individual and business customers in North Carolina.
FNB United has a market cap $187 million; its shares were traded at around $8.56 with a P/S ratio of 2.10.
Harris & Harris Group (TINY)
In the past week nine insiders made ten different insider buys. These insiders consisted of directors Phillip Bauman, Charles Ramsey, James Robers, Dillaway Ayres, Richard Shanley, Lucio Lanza and Bruce Shewmaker; CEO and Chairman Douglas Jamison and General Counsel Sandra Forman.
These insiders bought a total of 27,127 shares in the price range of $3.21 to $3.36 per share. This cost the insiders a combined total of $88,435.
These insider transactions mark the largest insider group buying since May 2012.
Harris & Harris is an internally managed venture capital company specializing in nanotechnology and Microsystems. The company’s primary investment objective is to achieve long-term capital appreciation by making venture capital investments. Generation of current income is a secondary objective. The company defines venture capital investments as the money and resources made available to privately held and publicly traded small businesses that it believes have exceptional growth potential.
Some things to note:
· The company shows strong financial strength
· Harris & Harris Group has no debt.
· The price is close to a 10-year low of $3.08.
Harris & Harris has a market cap of $103.3 million; its shares were traded at around $3.27 with a P/E ratio of 11.50 and P/S ratio of 109.10.
Significant Insider Sells
Symetra Financial Corporation (SYA)
Sander Levy made the largest insider transaction of the week by selling over 6 million of his shares in Symetra Financial.
Director Sander Levy sold a total of 6,089,999 shares of Symetra at an average price of $13.43. This brought in the very large total of $81,788,687 for the director. He still holds at least 25,000 shares of Symetra. Since this sell, the price per share has decreased -0.67%. Levy’s sell is the first insider transaction since Nov. 2011.
Symetra, through its subsidiaries, offers group and individual insurance products and retirement products, including annuities marketed through benefits consultants, financial advisors in all states and the District of Columbia. The company operates in five segments: Benefits, Deferred Annuities, Income Annuities, Life and Other.
Some things to note:
· The company’s gross margin and operating margin have both been in a long-term decline
· The P/B ratio is close to a 1-year low of 0.42.
· The price is close to a 5-year high of $14.25.
· The P/S ratio is close to a 2-year high of 0.96.
Symetra Financial has a market cap of $1.6 billion; its shares were traded around $13.34 with a P/E ratio of 9.30 and a P/S ratio of 0.90. The dividend yield of Symetra stocks is 2.30%. The company had an annual average earnings growth of 55.2% over the past five years.
American Financial Group (AFG)
American Financial reported two insider sells this week as the price per share has hit an all-time high.
Co-CEO and Co-President Craig Linder sold 26,281 shares for $49.52 per share. Linder brought in $1,301,435 on this sell. He still holds on to over 1.75 million shares of his company’s stock. Since his sell the price per share has dropped -1.96%.
Director John Berding sold 16,950 shares at $49.65 per share. This brought in $841,568 for the director. He still holds on to 111,222 shares of American Financial. Since his sell the price per share has decreased -2.22%.
American Financial, through its subsidiaries, is engaged mainly in property and casualty insurance, focusing on specialized commercial products for businesses, and in the sale of traditional fixed, indexed and variable annuities and a variety of supplemental insurance products. The company manages its business as three segments: property and casualty insurance, annuity and supplemental insurance and other, which includes holding company assets and costs.
Some things to note:
· The company’s operating margin has been in a 5-year decline. The average rate of decline per year is -2.5%
· The price is sitting near the 10-year high of $49.56.
· The P/S ratio is close to a 5-year high of 0.91.
· The company has shown predictable revenue and earnings growth.
American Financial Group has a market cap of $4.38 billion; its shares were traded around $48.55 with a P/E ratio of 9.10 and a P/S ratio of 0.90. The dividend yield of AFG stocks is 1.60%. The company had an annual average earnings growth of 3.8% over the past ten years. GuruFocus rated American Financial the business predictability rank of 2-star.
Northern Trust Corporation (NTRS)
Northern Trust reported seven insider sells this past week. These sells come as the price of Northern Trust stock is sitting at a three-year high. The insiders include: Steven Fradkin (President C&IS), Biff Bowman (Head of HR), Joyce St. Clair (President/O&T), Frederick Waddell (Chairman and CEO), Kelly Welsh (Executive VP & General Counsel) and Stephen Potter (President NTGI).
These insiders bought a combined total of 164,334 shares of Northern Trust in the price range of $56.50 to $58.25. The corporate executives made a collective total of $9,418,705.
This most recent cluster sell comes as the price is at a five-year high. It also marks the largest insider cluster sell for the company.
Northern Trust is a financial holding company that is a provider of investment management, asset and fund administration, fiduciary, and banking solutions for corporations, institutions and affluent individuals. The company organizes its services globally around its two client-focused main business units: Corporate and Institutional Services (C&IS) and Personal Financial Services (PFS).
Some things to note:
· The per share revenue has been in decline for the past five years.
· The operating margin has been in decline for the past five years. The average rate of decline is 4.9% per year.
· The price is sitting at a 3-year high.
· The P/S ratio is close to the 3-year high of 3.59.
· The company has issued $614.1 million of debt in the past three years.
Northern Trust has a market cap of $13.84 billion; its shares were traded around $57.11 with a P/E ratio of 19.90 and a P/S ratio of 3.50. The dividend yield of Northern Trust is 2.10%. The company had an annually average earnings growth of 3.8% over the past 10 years.
You can view a complete list of insider transactions from the past week here. Also to look at insider trends in the financial services sector, click here.