In a recent transaction, Dominic Frederico, President, CEO, and Deputy Chairman of Assured Guaranty Ltd. (NYSE:AGO), sold 40,000 shares of the company's stock. According to the SEC filing, the shares were sold at an average price of $78.12, totaling over $3.1 million.
The transaction, dated June 20, 2024, was executed within a price range between $77.81 and $78.42 per share, with the reported average price reflecting a weighted mean rounded to the nearest cent. Post-sale, Frederico's direct holdings in the company amount to 1,410,824.0034 shares.
Assured Guaranty Ltd., a Bermuda-based financial services company specializing in surety insurance, has seen its shares being actively traded by its top executives, which is a regular part of market activities and personal financial management.
While the CEO has reduced his position in the company, the SEC filing also disclosed the indirect ownership of Assured Guaranty shares by Frederico's immediate family members. These include 9,400 shares held by his wife, 200 shares by his daughter, and 345,000 shares owned by a family limited partnership.
Investors often monitor such insider transactions to gain insights into the company's health and the confidence level of its top executives. Frederico's recent sale represents a significant transaction by the company's CEO and is a notable event for shareholders and potential investors.
The company, which trades under the ticker AGO on the New York Stock Exchange, has not released any official statement regarding this transaction at the time of reporting. Interested parties, including shareholders and the Securities and Exchange Commission staff, may request detailed information about the exact prices at which the shares were sold within the reported range.
In other recent news, Assured Guaranty Ltd. reported substantial growth in its Q1 2024 financial results, including a record adjusted operating income per share and strong new business production. The company's adjusted operating income per share reached a record $1.96, a 75% increase from the previous year, and it insured 53% of all primary market insured par sold in the quarter. Assured Guaranty repurchased $129 million of common shares in Q1, with a total authorization of $414 million for future repurchases. Moody's (NYSE:MCO) upgraded the insurance financial strength rating of AGC and affirmed AGM's rating, reflecting strong capital adequacy and market position. Despite a decline in net investment income, these developments indicate a positive outlook for Assured Guaranty. The company expressed optimism about the approval of a special dividend request in New York. Analysts highlighted the decrease in net investment income but anticipated its stabilization.
InvestingPro Insights
Assured Guaranty Ltd. (NYSE:AGO) has been a subject of investor interest following the CEO's recent share sale. In light of this event, a closer look at the company's financials through InvestingPro data and tips provides additional context for shareholders and potential investors. With a market capitalization of $4.2 billion and a robust gross profit margin of 82.7% for the last twelve months as of Q1 2024, the company's financial stability appears solid.
One of the notable InvestingPro Tips is the company's history of raising its dividend for 12 consecutive years, showcasing a commitment to returning value to shareholders. Furthermore, Assured Guaranty has maintained dividend payments for an impressive 21 consecutive years, with a dividend yield of 1.58% as of the most recent data. This consistent performance is a testament to the company's financial health and disciplined capital management strategy.
The company also boasts a low price-to-earnings (P/E) ratio of 5.85, suggesting that the stock may be undervalued relative to its earnings. This is further emphasized by the company trading at a price of 79.87% of its 52-week high, which could indicate a potential buying opportunity for value investors. Additionally, Assured Guaranty has demonstrated a solid one-year price total return of 47.72%, reflecting strong market confidence in the company's prospects.
While the CEO's recent sale might raise questions, the company's financial metrics and a history of shareholder-friendly actions provide a broader perspective. For those interested in gaining an even deeper understanding of Assured Guaranty's financial outlook, there are additional InvestingPro Tips available. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and discover the 11 additional tips that could help inform your investment decisions.
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