The fact that multiple Arthur J. Gallagher & Co. (NYSE:AJG) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. 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.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Arthur J. Gallagher

Arthur J. Gallagher Insider Transactions Over The Last Year

The Corporate VP & CFO, Douglas Howell, made the biggest insider sale in the last 12 months. That single transaction was for US$4.0m worth of shares at a price of US$250 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$322. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 16% of Douglas Howell's holding.

In total, Arthur J. Gallagher insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insiders At Arthur J. Gallagher Have Sold Stock Recently

We've seen more insider selling than insider buying at Arthur J. Gallagher recently. In total, insiders sold US$7.4m worth of shares in that time. Meanwhile Executive VP & COO Patrick Gallagher bought US$317k worth , as we said above . 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.

Does Arthur J. Gallagher Boast High 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. It's great to see that Arthur J. Gallagher insiders own 1.1% of the company, worth about US$855m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Arthur J. Gallagher Insider Transactions Indicate?

The insider sales have outweighed the insider buying, at Arthur J. Gallagher, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Arthur J. Gallagher is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Arthur J. Gallagher. Every company has risks, and we've spotted 3 warning signs for Arthur J. Gallagher you should know about.

Of course Arthur J. Gallagher may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.