When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in AXIS Capital Holdings Limited's (NYSE:AXS) instance, it's good news for shareholders.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for AXIS Capital Holdings

The Last 12 Months Of Insider Transactions At AXIS Capital Holdings

Over the last year, we can see that the biggest insider sale was by the Independent Director, Henry Smith, for US$526k worth of shares, at about US$72.90 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$87.82. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 13% of Henry Smith's stake. Henry Smith was the only individual insider to sell over the last year.

Over the last year, we can see that insiders have bought 13.43k shares worth US$854k. On the other hand they divested 7.22k shares, for US$526k. In total, AXIS Capital Holdings insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of AXIS Capital Holdings

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 0.6% of AXIS Capital Holdings shares, worth about US$47m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The AXIS Capital Holdings Insider Transactions Indicate?

The fact that there have been no AXIS Capital Holdings insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think AXIS Capital Holdings insiders are doubting the company, and they do own shares. Of course, the future is what matters most. So if you are interested in AXIS Capital Holdings, you should check out this free report on analyst forecasts for the company.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.