Alan Patterson, a director at Hamilton Insurance Group (HG), recently bought 21,135 shares. The buy is an initial stake for the director, and came to a total cost of $352,109.
This is the first insider buy of the year. The company’s Chief Accounting Officer sold nearly half his stake around the same time. Going further back, another director bought 10,000 shares back in December. But company insiders were largely sellers of shares in late 2023.
Overall, Hamilton Insurance Group insiders own 12.6% of shares.
The reinsurance company is up less than 10% over the past year, far lagging the overall stock market, although the stock is trending to new 52-week highs.
Operationally, Hamilton has been performing well, with a 104% jump in revenues, and a surging 205% earnings growth.
Hamilton Insurance currently trades at a 15% discount to its book value, and shares trade at just 5 times earnings.
Action to take: Shares look like a reasonable value at current prices. Reinsurance companies tend to get less attention than regular property and casualty insurance companies.
At present, shares do not pay a dividend.
For traders, the ongoing uptrend is likely to continue. The October $15 calls, last trading for about $2.50, are already about $1.60 in-the-money. The options can likely see mid-double-digit returns in the months ahead.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.