Insiders At Helmerich & Payne Sold US$5.9m In Stock, Alluding To Potential Weakness

The fact that multiple Helmerich & Payne, Inc. (NYSE:HP) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Helmerich & Payne

The Last 12 Months Of Insider Transactions At Helmerich & Payne

The Chairman of the Board, Hans Helmerich, made the biggest insider sale in the last 12 months. That single transaction was for US$4.3m worth of shares at a price of US$43.65 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$30.96. So it is hard to draw any strong conclusion from it.

In the last year Helmerich & Payne insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership Of Helmerich & Payne

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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Helmerich & Payne insiders own 3.6% of the company, worth about US$114m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Helmerich & Payne Insiders?

It doesn't really mean much that no insider has traded Helmerich & Payne shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Helmerich & Payne insiders selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for Helmerich & Payne that deserve your attention before buying any shares.

Of course Helmerich & Payne 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 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.