Insider Spends US$228k Buying More Shares In Heidrick & Struggles International

Investors who take an interest in Heidrick & Struggles International, Inc. (NASDAQ:HSII) should definitely note that the CEO & Director, Thomas Monahan, recently paid US$45.55 per share to buy US$228k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 40%.

See our latest analysis for Heidrick & Struggles International

Heidrick & Struggles International Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Chief Human Resources Officer, Sarah Payne, sold US$351k worth of shares at a price of US$40.40 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$42.75. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 36% of Sarah Payne's holding.

In total, Heidrick & Struggles International insiders sold more than they bought 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does Heidrick & Struggles International Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Heidrick & Struggles International insiders own about US$21m worth of shares. That equates to 2.4% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Heidrick & Struggles International Insiders?

The recent insider purchase is heartening. However, the longer term transactions are not so encouraging. While recent transactions indicate confidence in Heidrick & Struggles International, insiders don't own enough of the company to overcome our cautiousness about the longer term transactions. In short they are likely aligned with shareholders. While it's good to be aware of 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. At Simply Wall St, we found 2 warning signs for Heidrick & Struggles International that deserve your attention before buying any shares.

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 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.