Have Insiders Sold Heritage Insurance Holdings Shares Recently?

Some Heritage Insurance Holdings, Inc. (NYSE:HRTG) shareholders may be a little concerned to see that the Independent Chairman, Richard Widdicombe, recently sold a substantial US$2.4m worth of stock at a price of US$24.15 per share. That sale reduced their total holding by 14% which is hardly insignificant, but far from the worst we've seen.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Heritage Insurance Holdings Insider Transactions Over The Last Year

In fact, the recent sale by Richard Widdicombe was the biggest sale of Heritage Insurance Holdings shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (US$24.61). 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 14% of Richard Widdicombe's stake.

Happily, we note that in the last year insiders paid US$437k for 29.95k shares. But insiders sold 245.43k shares worth US$5.9m. In total, Heritage Insurance Holdings insiders sold more than they bought 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!

See our latest analysis for Heritage Insurance Holdings

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

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Heritage Insurance Holdings insiders own 25% of the company, currently worth about US$197m based on the recent share price. 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 Heritage Insurance Holdings Tell Us?

The insider sales have outweighed the insider buying, at Heritage Insurance Holdings, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Heritage Insurance Holdings makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Heritage Insurance Holdings.

Of course Heritage Insurance Holdings 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.

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.