Investors who take an interest in Graham Holdings Company (NYSE:GHC) should definitely note that the Executive Vice President, Andrew Rosen, recently paid US$288 per share to buy US$500k worth of the stock. Although the purchase only increased their holding by 6.8%, it is still a solid purchase in our view.
Graham Holdings Insider Transactions Over The Last Year
In fact, the recent purchase by Andrew Rosen was the biggest purchase of Graham Holdings shares made by an insider individual in the last twelve months, according to our records. So it’s clear an insider wanted to buy, at around the current price, which is US$309. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. If someone buys shares at well below current prices, it’s a good sign on balance, but keep in mind they may no longer see value. The good news for Graham Holdings share holders is that insiders were buying at near the current price.
Graham Holdings insiders may have bought shares in the last year, but they didn’t sell any. The average buy price was around US$329. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Graham Holdings insiders own 14% of the company, currently worth about US$229m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Graham Holdings Insiders?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Graham Holdings. Nice! So while it’s helpful to know what insiders are doing in terms of buying or selling, it’s also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that Graham Holdings has 2 warning signs and it would be unwise to ignore these.
Of course Graham Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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