The Independent Chairman of the Board of HC2 Holdings, Inc. (NYSE:HCHC), Avram Glazer, Just Bought 16% More Shares

HC2 Holdings, Inc. (NYSE:HCHC) shareholders (or potential shareholders) will be happy to see that the Independent Chairman of the Board, Avram Glazer, recently bought a whopping US$9.0m worth of stock, at a price of US$3.45. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 16%.

See our latest analysis for HC2 Holdings

The Last 12 Months Of Insider Transactions At HC2 Holdings

Notably, that recent purchase by Avram Glazer is the biggest insider purchase of HC2 Holdings shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$3.87. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for HC2 Holdings share holders is that insiders were buying at near the current price.

In the last twelve months insiders purchased 9.54m shares for US$29m. On the other hand they divested 154.47k shares, for US$392k. Overall, HC2 Holdings insiders were net buyers during the last year. Their average price was about US$3.09. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. The chart below shows insider transactions (by companies and individuals) over the last year. 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.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It's great to see that HC2 Holdings insiders own 36% of the company, worth about US$105m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The HC2 Holdings Insider Transactions Indicate?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about HC2 Holdings. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 3 warning signs we've spotted with HC2 Holdings (including 1 which is a bit unpleasant).

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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