Have Insiders Sold Houghton Mifflin Harcourt Company (NASDAQ:HMHC) Shares Recently?

By
Simply Wall St
Published
May 20, 2021
NasdaqGS:HMHC
Source: Shutterstock

Anyone interested in Houghton Mifflin Harcourt Company (NASDAQ:HMHC) should probably be aware that a company insider, Michael Dolan, recently divested US$499k worth of shares in the company, at an average price of US$9.29 each. Equally important, that sale actually reduced their holding by a full 78% which hardly makes us feel bullish about the stock.

View our latest analysis for Houghton Mifflin Harcourt

The Last 12 Months Of Insider Transactions At Houghton Mifflin Harcourt

Over the last year, we can see that the biggest insider purchase was by Independent Director Daniel Allen for US$508k worth of shares, at about US$3.39 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$9.28. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Over the last year we saw more insider selling of Houghton Mifflin Harcourt shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NasdaqGS:HMHC Insider Trading Volume May 21st 2021

I will like Houghton Mifflin Harcourt 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 Houghton Mifflin Harcourt

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 1.3% of Houghton Mifflin Harcourt shares, worth about US$15m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Houghton Mifflin Harcourt Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! 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. Every company has risks, and we've spotted 3 warning signs for Houghton Mifflin Harcourt you should know about.

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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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. 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.
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