FG

F&G Annuities & Life ($FG) CEO Accumulates 30,000 Shares in One Week Following Stock Plunge

05/16/2025 21:48

F&G Annuities & Life ($FG) CEO Christopher Blunt has been aggressively buying company shares over the past week, completing a series of three significant purchases that have caught investors' attention. Between May 9 and May 16, Blunt acquired a total of 30,000 shares worth approximately $930,000. Specifically, he purchased 10,000 shares at $30.80 on May 9, followed by 15,000 shares at $31.31 on May 12, and 5,000 shares at $32.11 on May 16. Notably, his first purchase coincided precisely with the day $FG's stock plummeted to $30.17 on May 9. This recent buying spree follows a similar pattern of significant insider purchases in March. During that period, Blunt acquired 30,000 shares worth about $1.06 million across three transactions between March 24-27. Other insiders joined the buying activity, with Director Celina Wang Doka purchasing 3,000 shares and EVP Michael Gravelle acquiring 7,000 shares. Perhaps most significantly, F&G's parent company, Fidelity National Financial ($FNF), made a massive purchase of 4,500,000 shares worth approximately $151.2 million on March 24. Blunt's consecutive purchases come as $FG shares trade near their 52-week low. The stock, which reached $48 in late November last year, has steadily declined to hit $30.17 on May 9, 2025, representing a roughly 37% drop from its 52-week high. It currently trades around the $31 mark. Christopher Blunt has led F&G since 2018, previously serving as Senior Executive Vice President at MetLife. He brings over 30 years of experience in the annuity and retirement solutions sector and is regarded as an industry veteran with deep expertise in the insurance business. $FG has recently reported challenging financial results. In its Q4 2024 earnings announced on February 21, the company reported earnings of $1.12 per share, falling short of the $1.20 market expectation, which triggered an 8.2% stock decline in a single day. More concerning, the company reported a net loss of $25 million for Q1 2025, a significant deterioration from the $111 million net income recorded in the same period last year. Analysts at Piper Sandler attribute F&G's performance challenges to recent interest rate cuts that have decreased the company's net investment income. Q4 net sales dropped to $2.44 billion, marking the first year-over-year decline since Q2 2023. Despite these short-term challenges, $FG displays several positive indicators. Assets under management (AUM) have grown to $67.4 billion, representing a 16% increase year-over-year, and the company continues to strengthen its leadership position in the pension risk transfer market. From a valuation perspective, $FG currently trades at relatively modest multiples with a P/E ratio of 8.42, P/B ratio of 0.96, and P/S ratio of 0.85, suggesting potential undervaluation. The company maintains a stable dividend yield of 2.84%. Wall Street analysts generally maintain a 'Hold' rating on $FG with a 12-month median price target of $44.00, approximately 42% above current trading levels. Insider trading experts interpret the CEO's consecutive purchases as a strong signal of management's confidence in a potential stock rebound. For financial services firms like $FG, CEOs typically possess deeper insights into the company's financial health and future outlook than outside investors, making such substantial purchases a potentially positive indicator. When evaluating the reliability of insider trading patterns, it's worth considering CEO Blunt's historical purchase behavior. Beyond the significant buying in March and May, he has demonstrated a pattern of acquiring shares during price dips, reflecting his long-term conviction in the company. Investors assessing $FG should weigh the current short-term performance challenges against the strong insider conviction, relatively low valuation metrics, and long-term growth potential in the annuity and life insurance markets. Particularly favorable for $FG is the anticipated increase in demand for annuity products as Baby Boomers continue to retire. In the coming weeks, investors should monitor any additional insider trading patterns and pay close attention to further guidance from management at an analyst conference expected in early June. The Q2 earnings announcement, anticipated in early August, will serve as a crucial indicator of whether $FG's performance is rebounding.

You can receive notifications when news is published.