Have Insiders Sold HC2 Holdings, Inc. (NYSE:HCHC) Shares Recently?

We'd be surprised if HC2 Holdings, Inc. (NYSE:HCHC) shareholders haven't noticed that the Chief Legal Officer & Corporate Secretary, Joseph Ferraro, recently sold US$131k worth of stock at US$2.41 per share. That sale was 20% of their holding, so it does make us raise an eyebrow.

See our latest analysis for HC2 Holdings

The Last 12 Months Of Insider Transactions At HC2 Holdings

Over the last year, we can see that the biggest insider purchase was by insider Julian Singer for US$5.9m worth of shares, at about US$3.67 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$3.02). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months insiders purchased 6.60m shares for US$19m. But insiders sold 154.47k shares worth US$392k. Overall, HC2 Holdings insiders were net buyers during the last year. Their average price was about US$2.92. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

HC2 Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does HC2 Holdings Boast High 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. HC2 Holdings insiders own about US$40m worth of shares. That equates to 28% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The HC2 Holdings Insider Transactions Indicate?

Insiders sold HC2 Holdings shares recently, but they didn't buy any. But we take heart from prior transactions. We like that insiders own a fair amount of the company. So we're happy enough to look past some selling. 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. At Simply Wall St, we found 3 warning signs for HC2 Holdings that deserve your attention before buying any shares.

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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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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