BRP Group Co-Founder & Chairman L. Baldwin Sells 52% Of Holding

Some BRP Group, Inc. (NASDAQ:BRP) shareholders may be a little concerned to see that the Co-Founder & Chairman, L. Baldwin, recently sold a substantial US$4.8m worth of stock at a price of US$25.72 per share. That diminished their holding by a very significant 52%, which arguably implies a strong desire to reallocate capital.

See our latest analysis for BRP Group

BRP Group Insider Transactions Over The Last Year

Notably, that recent sale by Co-Founder & Chairman L. Baldwin was not the only time they traded BRP Group shares this year. They previously purchased US$5.0m worth of shares at a price of US$28.87 per share. That means that even when the share price was higher than US$26.05 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. L. Baldwin was the only individual insider to buy shares in the last twelve months. We note that L. Baldwin was also the biggest seller.

Over the last year we saw more insider selling of BRP Group shares, than buying. 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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Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. BRP Group insiders own about US$72m worth of shares. That equates to 2.4% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At BRP Group Tell Us?

Insiders haven't bought BRP Group stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing BRP Group. Every company has risks, and we've spotted 2 warning signs for BRP Group you should know about.

But note: BRP Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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, but not derivative transactions.

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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.