Independent Director of Heritage Insurance Holdings Paul Whiting Buys 7.7% More Shares

Potential Heritage Insurance Holdings, Inc. (NYSE:HRTG) shareholders may wish to note that the Independent Director, Paul Whiting, recently bought US$134k worth of stock, paying US$13.35 for each share. Although the purchase only increased their holding by 7.7%, it is still a solid purchase in our view.

See our latest analysis for Heritage Insurance Holdings

Heritage Insurance Holdings Insider Transactions Over The Last Year

Notably, that recent purchase by Independent Director Paul Whiting was not the only time they bought Heritage Insurance Holdings shares this year. They previously made an even bigger purchase of US$418k worth of shares at a price of US$8.35 per share. Even though the purchase was made at a significantly lower price than the recent price (US$13.88), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Over the last year, we can see that insiders have bought 104.39k shares worth US$1.0m. On the other hand they divested 21.59k shares, for US$223k. In total, Heritage Insurance Holdings insiders bought more than they sold over the last year. Their average price was about US$9.73. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Heritage Insurance Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of Heritage Insurance Holdings

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Heritage Insurance Holdings insiders own about US$98m worth of shares. That equates to 19% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Heritage Insurance Holdings Insider Transactions Indicate?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Heritage Insurance Holdings we think they are probably pretty confident of a bright future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 1 warning sign with Heritage Insurance Holdings and understanding this should be part of your investment process.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.