Yahoo Finance Harvey Norman Holdings Limited (ASX:HVN) up 3.6%, but insiders are still down 9.6% after purchasing AU$6.7m of stock last year
Insiders who bought AU$6.7m worth of Harvey Norman Holdings Limited (ASX:HVN) stock in the last year recovered part of their losses as the stock rose by 3.6% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling AU$640k.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Harvey Norman Holdings
Harvey Norman Holdings Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Co-Founder Gerald Harvey for AU$3.4m worth of shares, at about AU$5.17 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$4.58). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months Harvey Norman Holdings insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Harvey Norman Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Harvey Norman Holdings Insiders Bought Stock Recently
Over the last quarter, Harvey Norman Holdings insiders have spent a meaningful amount on shares. Specifically, Co-Founder Gerald Harvey bought AU$3.4m worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.
Does Harvey Norman Holdings Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Harvey Norman Holdings insiders own 41% of the company, currently worth about AU$2.3b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Harvey Norman Holdings Tell Us?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Harvey Norman Holdings. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Harvey Norman Holdings has 2 warning signs (1 is a bit unpleasant!) that deserve your attention before going any further with your analysis.
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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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.
