This Insider Has Just Sold Shares In Hersha Hospitality Trust (NYSE:HT)

By
Simply Wall St
Published
August 31, 2021
NYSE:HT
Source: Shutterstock

Investors may wish to note that the Independent Trustee of Hersha Hospitality Trust, Michael Leven, recently netted US$94k from selling stock, receiving an average price of US$9.37. However we note that the sale only shrunk their holding by 9.0%.

See our latest analysis for Hersha Hospitality Trust

Hersha Hospitality Trust Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the CFO & Assistant Secretary, Ashish Parikh, sold US$714k worth of shares at a price of US$8.24 per share. That means that even when the share price was below the current price of US$9.38, an insider wanted to cash in some shares. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was 79% of Ashish Parikh's stake.

Hersha Hospitality Trust insiders didn't buy any shares 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!

insider-trading-volume
NYSE:HT Insider Trading Volume September 1st 2021

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

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. We usually like to see fairly high levels of insider ownership. Hersha Hospitality Trust insiders own about US$58m worth of shares. That equates to 14% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Hersha Hospitality Trust Insider Transactions Indicate?

An insider hasn't bought Hersha Hospitality Trust stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 4 warning signs for Hersha Hospitality Trust (1 is a bit unpleasant!) and we strongly recommend you look at them before investing.

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, but not derivative transactions.

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