We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Hertz Global Holdings, Inc. (NYSE:HTZ).
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'
Check out our latest analysis for Hertz Global Holdings
Hertz Global Holdings Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Mario Gabelli for US$378k worth of shares, at about US$17.20 per share. That implies that an insider found the current price of US$18.52 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Hertz Global Holdings share holders is that insiders were buying at near the current price.
Over the last year, we can see that insiders have bought 38000 shares worth US$636k. Hertz Global Holdings may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by 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!
Hertz Global Holdings is not the only stock insiders are buying. So take a peek at this freelist of growing companies with insider buying.
Does Hertz Global Holdings Boast High 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. Insiders own 0.9% of Hertz Global Holdings shares, worth about US$13m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Hertz Global Holdings Insiders?
It doesn't really mean much that no insider has traded Hertz Global Holdings shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Hertz Global Holdings and we see no evidence to suggest they are worried about the future. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this freereport showing analyst forecasts for its future.
But note: Hertz Global Holdings may not be the best stock to buy. So take a peek at this freelist of interesting companies with high ROE and low debt.
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