New Horizon Aircraft Drops To US$0.56, Yet Insiders May Have Sold Too Early

New Horizon Aircraft Ltd.'s (NASDAQ:HOVR) stock price has dropped 29% in the previous week, but insiders who sold CA$148k in stock over the past year have had less luck. Insiders would probably have been better off holding on to their shares given that the average selling price of CA$0.79 is still lower than the current share price.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for New Horizon Aircraft

New Horizon Aircraft Insider Transactions Over The Last Year

In fact, the recent sale by Dustin Shindo was the biggest sale of New Horizon Aircraft shares made by an insider individual in the last twelve months, according to our records. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$0.56. So it may not tell us anything about how insiders feel about the current share price.

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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New Horizon Aircraft Insiders Are Selling The Stock

The last quarter saw substantial insider selling of New Horizon Aircraft shares. Specifically, insider Dustin Shindo ditched US$148k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Does New Horizon Aircraft 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 8.6% of New Horizon Aircraft shares, worth about US$1.0m, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The New Horizon Aircraft Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. Insiders own relatively few shares in the company, and when you consider the sales, we're not particularly excited about the stock. We'd certainly practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, New Horizon Aircraft has 6 warning signs (and 4 which are concerning) we think you should know about.

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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 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.