Have Heidrick & Struggles International, Inc. (NASDAQ:HSII) Insiders Been Selling Their Stock?

By
Simply Wall St
Published
August 18, 2021
NasdaqGS:HSII
Source: Shutterstock

We wouldn't blame Heidrick & Struggles International, Inc. (NASDAQ:HSII) shareholders if they were a little worried about the fact that Krishnan Rajagopalan, the President recently netted about US$564k selling shares at an average price of US$41.45. However, that sale only accounted for 9.9% of their holding, so arguably it doesn't say much about their conviction.

See our latest analysis for Heidrick & Struggles International

Heidrick & Struggles International Insider Transactions Over The Last Year

In fact, the recent sale by Krishnan Rajagopalan was the biggest sale of Heidrick & Struggles International shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (US$41.74). 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. 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 just 9.9% of Krishnan Rajagopalan's stake.

Insiders in Heidrick & Struggles International didn't buy any shares in 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!

insider-trading-volume
NasdaqGS:HSII Insider Trading Volume August 19th 2021

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Heidrick & Struggles International Boast High Insider Ownership?

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. Insiders own 1.5% of Heidrick & Struggles International shares, worth about US$12m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Heidrick & Struggles International Tell Us?

Insiders sold Heidrick & Struggles International shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. On the plus side, Heidrick & Struggles International makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. 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. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Heidrick & Struggles International.

Of course Heidrick & Struggles International may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

When trading Heidrick & Struggles International or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted


Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.