We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we’ll take a look at whether insiders have been buying or selling shares in Herc Holdings Inc. (NYSE:HRI).
What Is Insider Selling?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
The Last 12 Months Of Insider Transactions At Herc Holdings
Over the last year, we can see that the biggest insider purchase was by Non-Executive Chairman Herbert Henkel for US$347k worth of shares, at about US$34.68 per share. That means that an insider was happy to buy shares at around the current price of US$41.60. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today’s share price, as the discount to value may have narrowed with the rising price. In this case we’re pleased to report that the insider purchases were made at close to current prices.
Happily, we note that in the last year insiders paid US$385k for 11300 shares. But they sold 1000 for US$36k. Overall, Herc Holdings insiders were net buyers last year. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Herc Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Herc Holdings Insiders Are Selling The Stock
Over the last three months, we’ve seen a bit of insider selling at Herc Holdings. US$36k worth of shares were sold by Mario Gabelli. But US$13k was spent on buying, too, . While it’s not great to see insider selling, the net amount sold isn’t enough for us to want to read anything into it.
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Our data indicates that Herc Holdings insiders own about US$6.4m worth of shares (which is 0.5% of the company). We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Herc Holdings Tell Us?
We note that there’s been a little more insider selling than buying, recently. But the difference is small, and thus, not concerning. But insiders have shown more of an appetite for the stock, over the last year. We’d like to see bigger individual holdings. However, we don’t see anything to make us think Herc Holdings insiders are doubting the company. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Herc Holdings.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.