Yahoo Finance Bullish insiders at Herbalife Nutrition Ltd. (NYSE:HLF) loaded up on US$640k of stock earlier this year
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Herbalife Nutrition Ltd. (NYSE:HLF), that sends out a positive message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Herbalife Nutrition
Herbalife Nutrition Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Director, John Tartol, sold US$258k worth of shares at a price of US$51.62 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$38.80. So it is hard to draw any strong conclusion from it. John Tartol was the only individual insider to sell over the last year.
In the last twelve months insiders purchased 13.63k shares for US$640k. But insiders sold 5.00k shares worth US$258k. In the last twelve months there was more buying than selling by Herbalife Nutrition insiders. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insiders at Herbalife Nutrition Have Bought Stock Recently
Over the last quarter, Herbalife Nutrition insiders have spent a meaningful amount on shares. We can see that Chairman & CEO John Agwunobi paid US$225k for shares in the company. No-one sold. This makes one think the business has some good points.
Insider Ownership of Herbalife Nutrition
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Herbalife Nutrition insiders own 3.6% of the company, currently worth about US$143m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Herbalife Nutrition Insider Transactions Indicate?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Herbalife Nutrition. One for the watchlist, at least! 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. Our analysis shows 4 warning signs for Herbalife Nutrition (3 shouldn't be ignored!) and we strongly recommend you look at them before investing.
But note: Herbalife Nutrition 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.
