Read This Before Buying Harley-Davidson, Inc. (NYSE:HOG) Shares

We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Harley-Davidson, Inc. (NYSE:HOG).

What Is Insider Selling?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.

See our latest analysis for Harley-Davidson

The Last 12 Months Of Insider Transactions At Harley-Davidson

Over the last year, we can see that the biggest insider sale was by the insider, Michelle Kumbier, for US$815k worth of shares, at about US$37.07 per share. While we don’t usually like to see insider selling, it’s more concerning if the sales take place at a lower price. It’s of some comfort that this sale was conducted at a price well above the current share price, which is US$16.73. So it is hard to draw any strong conclusion from it.

Insiders in Harley-Davidson didn’t buy any shares in the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

NYSE:HOG Recent Insider Trading April 7th 2020
NYSE:HOG Recent Insider Trading April 7th 2020

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Harley-Davidson Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.3% of Harley-Davidson shares, worth about US$6.6m, according to our data. Overall, this level of ownership isn’t that impressive, but it’s certainly better than nothing!

What Might The Insider Transactions At Harley-Davidson Tell Us?

There haven’t been any insider transactions in the last three months — that doesn’t mean much. We don’t take much encouragement from the transactions by Harley-Davidson insiders. And usually insiders own more stock in the company, according to our data. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Harley-Davidson. To help with this, we’ve discovered 2 warning signs (1 can’t be ignored!) that you ought to be aware of before buying any shares in Harley-Davidson.

If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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 editorial-team@simplywallst.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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.