Yahoo Finance Herbalife's Stephan Gratziani Acquires 213% More Stock \
Investors who take an interest in Herbalife Ltd. (NYSE:HLF) should definitely note that insider Stephan Gratziani recently paid US$14.06 per share to buy US$330k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 213%, potentially signalling some real optimism.
Check out our latest analysis for Herbalife
Herbalife Insider Transactions Over The Last Year
Notably, that recent purchase by Stephan Gratziani is the biggest insider purchase of Herbalife shares that we've seen in the last year. That implies that an insider found the current price of US$14.65 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Herbalife share holders is that insiders were buying at near the current price.
Herbalife insiders may have bought shares in the last year, but they didn't sell any. Their average price was about US$15.57. These transactions suggest that insiders have considered the current price attractive. 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!
Herbalife is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Herbalife Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Herbalife insiders own 1.9% of the company, worth about US$27m. 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 Herbalife Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Herbalife we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Herbalife. Case in point: We've spotted 3 warning signs for Herbalife you should be aware of, and 2 of these are significant.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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