This Insider Has Just Sold Shares In Héroux-Devtek Inc. (TSE:HRX)

We wouldn't blame Héroux-Devtek Inc. (TSE:HRX) shareholders if they were a little worried about the fact that Gilles Labbé, the Executive Chairman of the Board recently netted about CA$1.5m selling shares at an average price of CA$15.35. However, that sale only accounted for 2.6% of their holding, so arguably it doesn't say much about their conviction.

Check out our latest analysis for Héroux-Devtek

The Last 12 Months Of Insider Transactions At Héroux-Devtek

Notably, that recent sale by Gilles Labbé is the biggest insider sale of Héroux-Devtek shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of CA$16.02. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 2.6% of Gilles Labbé's holding.

In the last twelve months insiders purchased 54.40k shares for CA$584k. But they sold 100.00k shares for CA$1.5m. 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!

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Does Héroux-Devtek 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. We usually like to see fairly high levels of insider ownership. It appears that Héroux-Devtek insiders own 11% of the company, worth about CA$67m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Héroux-Devtek Tell Us?

An insider hasn't bought Héroux-Devtek stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Héroux-Devtek. Our analysis shows 2 warning signs for Héroux-Devtek (1 is concerning!) and we strongly recommend you look at them before investing.

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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.

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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. 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.
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