Have Insiders Sold Heritage Insurance Holdings Shares Recently?

We note that the Heritage Insurance Holdings, Inc. (NYSE:HRTG) Independent Director, Nicholas Pappas, recently sold US$51k worth of stock for US$12.64 per share. However we note that the sale only shrunk their holding by 5.0%.

View our latest analysis for Heritage Insurance Holdings

Heritage Insurance Holdings Insider Transactions Over The Last Year

The insider Raymond Hyer made the biggest insider purchase in the last 12 months. That single transaction was for US$1m worth of shares at a price of US$6.75 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$12.36. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Over the last year, we can see that insiders have bought 319.65k shares worth US$2.4m. But they sold 21.59k shares for US$223k. In the last twelve months there was more buying than selling by Heritage Insurance Holdings insiders. They paid about US$7.50 on average. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

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. Insiders own 25% of Heritage Insurance Holdings shares, worth about US$92m. 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 Heritage Insurance Holdings Insider Transactions Indicate?

Insider selling has just outweighed insider buying in the last three months. But the difference isn't enough to have us worried. However, our analysis of transactions over the last year is heartening. Insiders own shares in Heritage Insurance Holdings and we see no evidence to suggest they are worried about the future. 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 3 warning signs for Heritage Insurance Holdings that deserve your attention before buying any shares.

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 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.