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Summary

  • Four insiders purchased the stock within one month.
  • The stock was sold by no insiders in the month of intensive purchasing.
  • Two of these four insiders increased their holdings by more than 10%.

Employers Holdings (NYSE:EIG) operates in the commercial property and casualty insurance industry in the United States.

(click to enlarge)

Insider buying during the last 30 days

Here is a table of Employers' insider activity during the last 30 days.

NameTitleTrade DateShares PurchasedCurrent OwnershipIncrease In Shares
Michael McSallyDirectorMarch 102,5003,852 shares+184.9%
Katherine OngDirectorFeb 2650029,429 shares+1.7%
James KronerDirectorFeb 245,0006,352 shares+369.8%
Valerie GlennDirectorFeb 241,30048,553 shares+2.8%

There have been 9,300 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of Employers' insider activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
March 20142,5000
February 20146,8000
January 201400
December 201300
November 2013027,082
October 201300
September 2013020,000
August 20131,00082,500
July 201300
June 201300
May 201300
April 201300
March 2013031,557
February 201300
January 201300

There have been 10,300 shares purchased, and there have been 161,139 shares sold by insiders since January 2013. The month of February 2014 has seen the most insider buying.

Financials

Employers reported the full-year 2013 financial results on February 19 with the following highlights:

Revenue$723.6 million
Net income$63.8 million
Book value$26.13 per share

(click to enlarge)

(Source: Earnings presentation)

The four insiders purchased their shares after these results.

Competition

Employers' competitors include The Hartford Financial Services Group (NYSE:HIG), Meadowbrook Insurance Group (NYSE:MIG), and The Travelers Companies (NYSE:TRV). Here is a table comparing these companies.

CompanyEIGHIGMIGTRVIndustry Average (Accident & Health Insurance)
Market Cap:645.90M16.01B282.86M29.52B29.91B
Employees:723N/AN/A30,8009.14K
Qtrly Rev Growth (yoy):0.21-0.21-0.340.040.40
Revenue:723.58M24.66B791.17M26.08B23.60B
Gross Margin:0.080.200.020.340.30
EBITDA:62.50M871.00M-8.56M6.07B4.83B
Operating Margin:0.080.03-0.020.200.17
Net Income:63.82M300.00M-112.31M3.65BN/A
EPS:2.000.34-2.259.740.22
P/E:10.31104.55N/A8.6012.73
PEG (5 yr expected):2.361.071.141.172.04
P/S:0.870.650.331.131.27

Employers has the fastest revenue growth among these four companies.

Here is a table of these competitors' insider activities this year.

CompanyInsider buying / sharesInsider selling / shares
HIG011,029
MIG00
TRV0444,449

Only Employers has seen intensive insider buying during the last 30 days.

Conclusion

There have been five different insiders buying Employers, and there have not been any insiders selling Employers during the last 30 days. Two of these four insiders increased their holdings by more than 10%. Employers has an insider ownership of 1.80%.

Employers has a book value of $26.13 per share. I believe the stock could be a good pick below the book value based on the intensive insider buying.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in EIG over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Source: Employers Holdings: 4 Different Insiders Have Purchased Shares During The Last 30 Days