It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Horace Mann Educators Corporation (NYSE:HMN).
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.
Horace Mann Educators Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the President, Marita Zuraitis, for US$406k worth of shares, at about US$40.63 per share. So what is clear is that an insider saw fit to sell at around the current price of US$38.54. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Horace Mann Educators 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!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Horace Mann Educators Boast High Insider Ownership?
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.4% of Horace Mann Educators shares, worth about US$6.5m, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Does This Data Suggest About Horace Mann Educators Insiders?
It doesn't really mean much that no insider has traded Horace Mann Educators shares in the last quarter. We don't take much encouragement from the transactions by Horace Mann Educators insiders. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Horace Mann Educators.
Of course Horace Mann Educators 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, but not derivative transactions.
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