This Insider Has Just Sold Shares In Helmerich & Payne, Inc. (NYSE:HP)

By
Simply Wall St
Published
May 10, 2022
NYSE:HP
Source: Shutterstock

We'd be surprised if Helmerich & Payne, Inc. (NYSE:HP) shareholders haven't noticed that the Senior VP & CFO, Mark Smith, recently sold US$211k worth of stock at US$47.40 per share. However, the silver lining is that the sale only reduced their total holding by 4.3%, so we're hesitant to read anything much into it, on its own.

View our latest analysis for Helmerich & Payne

Helmerich & Payne Insider Transactions Over The Last Year

The Chairman of the Board, Hans Helmerich, made the biggest insider sale in the last 12 months. That single transaction was for US$6.4m worth of shares at a price of US$42.54 each. That means that even when the share price was below the current price of US$44.68, an insider wanted to cash in some shares. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 6.5% of Hans Helmerich's stake.

Helmerich & Payne insiders didn't buy any shares over the last year. 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
NYSE:HP Insider Trading Volume May 10th 2022

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

Does Helmerich & Payne 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. We usually like to see fairly high levels of insider ownership. Helmerich & Payne insiders own about US$166m worth of shares (which is 3.2% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

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

Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Helmerich & Payne. Our analysis shows 3 warning signs for Helmerich & Payne (1 can't be ignored!) and we strongly recommend you look at them before investing.

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.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.