This Insider Has Just Sold Shares In Huron Consulting Group

We'd be surprised if Huron Consulting Group Inc. (NASDAQ:HURN) shareholders haven't noticed that the Independent Non-Executive Director, John McCartney, recently sold US$442k worth of stock at US$144 per share. However, the silver lining is that the sale only reduced their total holding by 5.8%, so we're hesitant to read anything much into it, on its own.

Check out our latest analysis for Huron Consulting Group

Huron Consulting Group Insider Transactions Over The Last Year

Notably, that recent sale by John McCartney is the biggest insider sale of Huron Consulting Group shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of US$149. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent 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. We note that the biggest single sale was only 5.8% of John McCartney's holding.

Huron Consulting Group insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insider Ownership Of Huron Consulting Group

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 2.4% of Huron Consulting Group shares, worth about US$58m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Huron Consulting Group Tell Us?

An insider sold Huron Consulting Group shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But since Huron Consulting Group is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Huron Consulting Group has 2 warning signs and it would be unwise to ignore these.

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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.