Have Insiders Sold Hertz Global Holdings Shares Recently?

We'd be surprised if Hertz Global Holdings, Inc. (NASDAQ:HTZ) shareholders haven't noticed that the Executive VP & Chief Human Resources Officer, Eric Leef, recently sold US$248k worth of stock at US$5.78 per share. The eyebrow raising move amounted to a reduction of 16% in their holding.

We've discovered 4 warning signs about Hertz Global Holdings. View them for free.

Hertz Global Holdings Insider Transactions Over The Last Year

The Independent Director, Mark Fields, made the biggest insider sale in the last 12 months. That single transaction was for US$413k worth of shares at a price of US$4.36 each. That means that even when the share price was below the current price of US$6.25, 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. 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 29% of Mark Fields's stake.

In the last year Hertz Global Holdings insiders didn't buy any company stock. 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!

Check out our latest analysis for Hertz Global Holdings

I will like Hertz Global Holdings better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 1.5% of Hertz Global Holdings shares, worth about US$30m. 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 Hertz Global Holdings Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To that end, you should learn about the 4 warning signs we've spotted with Hertz Global Holdings (including 1 which is concerning).

But note: Hertz Global Holdings 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 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.