Insiders who purchased Horizon Global Corporation (NYSE:HZN) earlier this year lose an additional US$239k as the stock sinks to US$2.71

By
Simply Wall St
Published
May 11, 2022
NYSE:HZN
Source: Shutterstock

The recent price decline of 29% in Horizon Global Corporation's (NYSE:HZN) stock may have disappointed insiders who bought US$484k worth of shares at an average price of US$5.36 in the past 12 months. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth US$245k, which is not great.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Horizon Global

The Last 12 Months Of Insider Transactions At Horizon Global

Over the last year, we can see that the biggest insider purchase was by Independent Chairman of the Board John Kennedy for US$148k worth of shares, at about US$5.51 per share. That means that an insider was happy to buy shares at above the current price of US$2.71. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

While Horizon Global insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NYSE:HZN Insider Trading Volume May 11th 2022

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).

Horizon Global Insiders Bought Stock Recently

It's good to see that Horizon Global insiders have made notable investments in the company's shares. We can see that Independent Chairman of the Board John Kennedy paid US$441k for shares in the company. No-one sold. This could be interpreted as suggesting a positive outlook.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 12% of Horizon Global shares, worth about US$9.1m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Horizon Global Insider Transactions Indicate?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Horizon Global insiders are reasonably well aligned, and optimistic for the future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. When we did our research, we found 5 warning signs for Horizon Global (2 shouldn't be ignored!) that we believe deserve your full attention.

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.

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