We wouldn’t blame Voya Financial, Inc. (NYSE:VOYA) shareholders if they were a little concerned that Kevin Silva, the executive vice president and chief human resources officer, recently made around US$840,000 by selling shares at an average price of 68.80 US$. Probably the most concerning element of the whole transaction is that the disposal amounted to 55% of their entire stake.
Discover our latest analysis for Voya Financial
The last 12 months of insider trading at Voya Financial
In fact, the recent sale by Executive Vice President and Chief Human Resources Officer Kevin Silva wasn’t their only sale of Voya Financial stock this year. Earlier in the year, they recouped US$67.17 per share in a -US$1.0 million sale. Clearly, therefore, an insider wanted to take money off the table, even below the current price of US$68.55. When an insider sells below the current price, it suggests that they consider this lower price to be fair. This makes us wonder what they think of the recent (higher) valuation. Please note, however, that sellers may have various reasons for selling, so we don’t know for sure what they think of the stock price. We note that the largest single sale was Kevin Silva’s 57% stake.
Voya Financial insiders haven’t bought any shares in the past year. You can see insider trading (by companies and individuals) over the past year illustrated in the table below. By clicking on the graph below, you will be able to see the precise detail of each insider trade!
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Does Voya Financial boast of high insider ownership?
Another way to test alignment between a company’s executives and other shareholders is to look at how many shares they own. We generally like to see fairly high levels of insider ownership. Voya Financial insiders appear to own 0.8% of the company, worth around $56 million. While this is a high but not exceptional level of insider ownership, it suffices to indicate some alignment between management and small shareholders.
What could insider trading at Voya Financial tell us?
Insiders recently sold shares of Voya Financial, but did not buy any. And there have been no purchases to comfort us in the past year. But since Voya Financial is profitable and growing, that doesn’t worry us too much. Insiders hold shares, but we remain quite cautious, given the history of sales. We would exercise caution before purchasing! 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. To help you, we found 2 warning signs (1 is concerning!) you need to know before buying shares of Voya Financial.
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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.