We recently published a list of 10 Top Insider Stock Buys And Sells In January. In this article, we are going to take a look at where Skyward Specialty Insurance Group (NASDAQ:SKWD) stands against other top insider stock buys and sells in January.
Ever heard of the “January effect?” In case you haven’t, a “January effect” is considered a phenomenon in the stock market where stock prices, most commonly of small-cap stocks, rise in the month of January. Analysts have noticed the pattern and provided various explanations for it.
Some attribute the January rise in price to tax-loss harvesting, which usually happens between October and December. The theory suggests that after investors have sold some of their stocks at the end of the year for tax purposes, investors search for new buying opportunities. Others believe that year-end bonuses lead to more investments which subsequently increases stock prices. Overall, whatever the reasons, January seems to be a favorable part of the year for the stock market.
This January, the broader market index went up 2.93%. But, what are some of the stocks that have seen the most insider trading activity this month? To find out, we used Insider Monkey’s insider trading stock screener and looked for stocks with a minimum of five insiders buying or selling in January.
Why should we be interested in insider trading activity? While both insider selling and buying can be driven by various motives, it is important to consider these moves within the broader context of the company’s fundamentals, industry trends, and overall market conditions. That’s why due diligence before any investment is of the utmost importance. However, insider trading activity in combination with other relevant determinants can offer valuable insights into a company’s capabilities, helping investors make more informed investment decisions.
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An executive in a suit flanked by workers, all smiling and looking confident.
Skyward Specialty Insurance Group, Inc. (NASDAQ:SKWD)
Number of insiders selling: 9
Market Cap: $1.99 billion
Skyward Specialty Insurance Group is eighth among the 10 Top Insider Stock Buys And Sells in January. This is a professional insurer with a focus on niche markets, offering tailored underwriting solutions for risk that traditional insurers often avoid. We previously covered A Bull Case Theory on Skyward stock.
In short, the theory suggests that while natural disasters bring short-term risks, Skyward’s disciplined pricing and risk management should protect its capital in the long term. In 2023, many property and casualty insurers posted underwriting losses with a combined ratio of 101.5%, Skyward delivered a 90.7% ratio, showcasing its capability to drive consistent profits.
Skyward runs in two segments – admitted insurance, which includes state-regulated policies, and non-admitted insurance, which provides pricing flexibility and coverage for specialized risks.
Last month, nine insiders, including the company’s Chairman and CEO, President, CFO, and CIO sold a total of around $2.34 million worth of Skyward shares at an average price of $47.57 per share. The stock is now trading at $49.86 per share, having lost 1.35% since the beginning of the year. Over the last 12 months, Skyward Specialty shares gained 43.81%.
For the fourth quarter of 2024, Skyward reported preliminary results, with net income of $14.4 million; and adjusted operating income of $33.2 million. This compares to net income of $29.3 million and adjusted operating income of $24.3 million in the same period of 2023. For the year ending 2025, the company expects net income of between $138.0 million and $150.0 million, and a combined ratio between 91% and 92%, inclusive of 2.0 to 2.5 points of catastrophe losses.
The average rating on the stock from 10 analysts is “Buy,” reveals StockAnalysis. Analysts also have set a price target on the stock of $53.0, which is an increase of 6.30% from the latest price.
With nine insiders selling the stock in January and a market capitalization of $1.99 billion, Skyward is also one of 10 Small–Cap Stocks Insiders Are Selling Recently.
Overall, SKWD ranks 8th on our list of top insider stock buys and sells in January. While we acknowledge the potential of SKWD, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SKWD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
