Potential The Howard Hughes Corporation (NYSE:HHC) shareholders may wish to note that the Independent Director, Allen Model, recently bought US$418k worth of stock, paying US$97.17 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 26%.
Howard Hughes Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Senior Executive VP, Peter Riley, sold US$856k worth of shares at a price of US$58.50 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$99.69. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. We note that the biggest single sale was only 26% of Peter Riley's holding.
Over the last year we saw more insider selling of Howard Hughes shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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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. Howard Hughes insiders own 3.7% of the company, currently worth about US$203m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Howard Hughes Insider Transactions Indicate?
The recent insider purchase is heartening. However, the longer term transactions are not so encouraging. The high levels of insider ownership, and the recent buying by an insider suggests they are well aligned and optimistic. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Howard Hughes. At Simply Wall St, we found 1 warning sign for Howard Hughes that deserve your attention before buying any shares.
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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.
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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. 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.
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