Yahoo Finance Have Insiders Been Selling The Howard Hughes Corporation (NYSE:HHC) Shares?
We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in The Howard Hughes Corporation (NYSE:HHC).
Do Insider Transactions Matter?
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.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
See our latest analysis for Howard Hughes
Howard Hughes Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by CEO & Director David Weinreb for US$55m worth of shares, at about US$138 per share. That is hardly a positive sign, even though it took place above the latest price (US$109). So it may not shed much light on insider confidence at current levels. Notably David Weinreb was also the biggest buyer, having purchased US$6.5m worth of shares.
Happily, we note that in the last year insiders paid US$6.5m for 60.36k shares. On the other hand they divested 400.77k shares, for US$55m. Over the last year we saw more insider selling of Howard Hughes shares, than buying. They sold for an average price of about US$138. Insider selling doesn’t make us excited to buy. But the selling was at much higher prices than the current share price (US$109), so it probably doesn’t tell us a lot about the value on offer today. You can see a visual depiction of insider transactions (by 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders at Howard Hughes Have Bought Stock Recently
Over the last three months, we’ve seen significantly more insider buying, than insider selling, at Howard Hughes. 4 insiders bought US$811k worth of shares. But Kevin Orrock sold shares worth US$74k. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.
Does Howard Hughes 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Howard Hughes insiders own 4.5% of the company, currently worth about US$207m 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 Howard Hughes Insider Transactions Indicate?
It’s certainly positive to see the recent insider purchases. However, the longer term transactions are not so encouraging. Overall, we’d prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, Howard Hughes insiders are reasonably well aligned, and optimistic for the future. Of course, the future is what matters most. So if you are interested in Howard Hughes, you should check out this free report on analyst forecasts for the company.
But note: Howard Hughes 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.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
