This Insider Has Just Sold Shares In Harvey Norman Holdings

We wouldn't blame Harvey Norman Holdings Limited (ASX:HVN) shareholders if they were a little worried about the fact that Kay Lesley Page, the CEO & Executive Director recently netted about AU$2.2m selling shares at an average price of AU$4.88. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 2.2%.

See our latest analysis for Harvey Norman Holdings

Harvey Norman Holdings Insider Transactions Over The Last Year

In fact, the recent sale by Kay Lesley Page was the biggest sale of Harvey Norman Holdings shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of AU$4.71. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

You can see the insider transactions (by companies and 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!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Does Harvey Norman Holdings Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Harvey Norman Holdings insiders own 41% of the company, worth about AU$2.4b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Harvey Norman Holdings Tell Us?

An insider sold Harvey Norman Holdings shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for Harvey Norman Holdings you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.