Independent Director of Helmerich & Payne Belgacem Chariag Buys 217% More Shares

Helmerich & Payne, Inc. (NYSE:HP) shareholders (or potential shareholders) will be happy to see that the Independent Director, Belgacem Chariag, recently bought a whopping US$1.0m worth of stock, at a price of US$27.08. That increased their holding by a full 217%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.

See our latest analysis for Helmerich & Payne

Helmerich & Payne Insider Transactions Over The Last Year

Notably, that recent purchase by Belgacem Chariag is the biggest insider purchase of Helmerich & Payne shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$26.95). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Happily, we note that in the last year insiders paid US$1.7m for 60.66k shares. On the other hand they divested 38.41k shares, for US$1.5m. In total, Helmerich & Payne insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Helmerich & Payne

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Helmerich & Payne insiders own about US$105m worth of shares (which is 3.9% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Helmerich & Payne Tell Us?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Helmerich & Payne. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Helmerich & Payne. At Simply Wall St, we found 2 warning signs for Helmerich & Payne that deserve your attention before buying any shares.

But note: Helmerich & Payne may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.