We'd be surprised if Hyster-Yale Materials Handling, Inc. (NYSE:HY) shareholders haven't noticed that an insider, Gregory Breier, recently sold US$186k worth of stock at US$74.78 per share. The eyebrow raising move amounted to a reduction of 31% in their holding.
Hyster-Yale Materials Handling Insider Transactions Over The Last Year
The Chairman & CEO, Alfred Rankin, made the biggest insider sale in the last 12 months. That single transaction was for US$12m worth of shares at a price of US$59.04 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$75.88. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was 93% of Alfred Rankin's stake.
Hyster-Yale Materials Handling insiders didn't buy any shares over the last year. 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!
I will like Hyster-Yale Materials Handling better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership of Hyster-Yale Materials Handling
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Hyster-Yale Materials Handling insiders own 21% of the company, worth about US$266m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Hyster-Yale Materials Handling Insiders?
Insiders haven't bought Hyster-Yale Materials Handling stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. 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. Case in point: We've spotted 4 warning signs for Hyster-Yale Materials Handling you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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