We wouldn’t blame Ameriprise Financial, Inc. (NYSE:AMP) shareholders if they were a little worried about the fact that Joseph Sweeney, the President of Advice & Wealth Management – Products and Service Delivery recently netted about US$1.1m selling shares at an average price of US$378. That’s a big disposal, and it decreased their holding size by 26%, which is notable but not too bad.
View our latest analysis for Ameriprise Financial
The Last 12 Months Of Insider Transactions At Ameriprise Financial
Over the last year, we can see that the biggest insider sale was by the Chairman & CEO, James Cracchiolo, for US$14m worth of shares, at about US$353 per share. That means that an insider was selling shares at slightly below the current price (US$382). 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. While insider selling is not a positive sign, we can’t be sure if it does mean insiders think the shares are fully valued, so it’s only a weak sign. This single sale was just 20% of James Cracchiolo’s stake.
Ameriprise Financial insiders didn’t buy any shares 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!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does Ameriprise Financial Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Ameriprise Financial insiders own about US$102m worth of shares (which is 0.3% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Ameriprise Financial Tell Us?
An insider hasn’t bought Ameriprise Financial stock in the last three months, but there was some selling. And there weren’t any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we’re a little hesitant, given the history of share sales. So while it’s helpful to know what insiders are doing in terms of buying or selling, it’s also helpful to know the risks that a particular company is facing. In terms of investment risks, we’ve identified 2 warning signs with Ameriprise Financial and understanding them should be part of your investment process.
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.
What are the risks and opportunities for Ameriprise Financial?
Trading at 14.3% below our estimate of its fair value
Earnings are forecast to grow 11.64% per year
Significant insider selling over the past 3 months
Profit margins (14.3%) are lower than last year (22.3%)
View all Risks and Rewards
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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.