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We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Harvard Bioscience, Inc. (NASDAQ:HBIO), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
We don’t think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. 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.’
Harvard Bioscience Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the , Robert Gagnon, for US$51k worth of shares, at about US$5.77 per share. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. It’s of some comfort that this sale was conducted at a price well above the current share price, which is US$2.00. So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Robert Gagnon.
You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Harvard Bioscience better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership of Harvard Bioscience
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Harvard Bioscience insiders own about US$7.8m worth of shares (which is 10% of the company). We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Harvard Bioscience Tell Us?
It doesn’t really mean much that no insider has traded Harvard Bioscience shares in the last quarter. Our analysis of Harvard Bioscience insider transactions leaves us unenthusiastic. And usually insiders own more stock in the company, according to our data. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Harvard Bioscience.
But note: Harvard Bioscience 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.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.