Have Insiders Sold HEICO Shares Recently?

We wouldn't blame HEICO Corporation (NYSE:HEI) shareholders if they were a little worried about the fact that Alan Schriesheim, the Independent Director recently netted about US$12m selling shares at an average price of US$240. That sale reduced their total holding by 23% which is hardly insignificant, but far from the worst we've seen.

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The Last 12 Months Of Insider Transactions At HEICO

Notably, that recent sale by Alan Schriesheim is the biggest insider sale of HEICO shares that we've seen in the last year. That means that even when the share price was below the current price of US$247, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 23% of Alan Schriesheim's stake.

Over the last year, we can see that insiders have bought 7.73k shares worth US$2.0m. But they sold 50.60k shares for US$12m. All up, insiders sold more shares in HEICO than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for HEICO

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Insider Ownership Of HEICO

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. HEICO insiders own 14% of the company, currently worth about US$4.2b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At HEICO Tell Us?

Insiders sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, HEICO makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for HEICO that deserve your attention before buying any shares.

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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.