We wouldn't blame Hawaiian Electric Industries, Inc. (NYSE:HE) shareholders if they were a little worried about the fact that Gregory Hazelton, the Executive VP & CFO recently netted about US$930k selling shares at an average price of US$42.25. Probably the most concerning element of the whole transaction is that the disposal amounted to 60% of their entire holding.
Hawaiian Electric Industries Insider Transactions Over The Last Year
The insider, Constance Lau, made the biggest insider sale in the last 12 months. That single transaction was for US$1.5m worth of shares at a price of US$42.15 each. That means that an insider was selling shares at around the current price of US$42.07. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
In the last year Hawaiian Electric Industries insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Hawaiian Electric Industries insiders own about US$56m worth of shares. That equates to 1.2% 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 Hawaiian Electric Industries Insider Transactions Indicate?
An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Hawaiian Electric Industries is growing earnings. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 3 warning signs for Hawaiian Electric Industries you should be aware of, and 1 of them is a bit unpleasant.
But note: Hawaiian Electric Industries 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, but not derivative transactions.
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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.