Bradley Radoff Is The Independent Director of Harte Hanks, Inc. (NASDAQ:HHS) And They Just Sold 42% Of Their Shares

Some Harte Hanks, Inc. (NASDAQ:HHS) shareholders may be a little concerned to see that the Independent Director, Bradley Radoff, recently sold a substantial US$1.2m worth of stock at a price of US$15.12 per share. That sale reduced their total holding by 42% which is hardly insignificant, but far from the worst we've seen.

See our latest analysis for Harte Hanks

Harte Hanks Insider Transactions Over The Last Year

Notably, that recent sale by Bradley Radoff is the biggest insider sale of Harte Hanks shares that we've seen in the last year. That means that even when the share price was below the current price of US$17.25, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 42% of Bradley Radoff's stake.

In the last twelve months insiders purchased 94.50k shares for US$662k. On the other hand they divested 97.68k shares, for US$1.4m. In total, Harte Hanks insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Harte Hanks better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Harte Hanks Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Harte Hanks insiders own about US$24m worth of shares. That equates to 20% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Harte Hanks Tell Us?

The stark truth for Harte Hanks is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since Harte Hanks is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 2 warning signs for Harte Hanks and we suggest you have a look.

But note: Harte Hanks may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, but not derivative transactions.

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.