Over the last year, a good number of insiders have significantly increased their holdings in Harley-Davidson, Inc. (NYSE:HOG). This is encouraging because it indicates that insiders are more optimistic about the company’s prospects.
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 Harley-Davidson
The Last 12 Months Of Insider Transactions At Harley-Davidson
Over the last year, we can see that the biggest insider purchase was by Chairman Jochen Zeitz for US$1.0m worth of shares, at about US$38.94 per share. Even though the purchase was made at a significantly lower price than the recent price (US$48.84), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn’t tell us much about whether insiders might find today’s price attractive.
Over the last year, we can see that insiders have bought 27.09k shares worth US$1.1m. On the other hand they divested 10.85k shares, for US$458k. In the last twelve months there was more buying than selling by Harley-Davidson insiders. 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!
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).
Harley-Davidson Insiders Are Selling The Stock
The last three months saw significant insider selling at Harley-Davidson. In total, insider Jonathan Root dumped US$112k worth of shares in that time, and we didn’t record any purchases whatsoever. Overall this makes us a bit cautious, but it’s not the be all and end all.
Does Harley-Davidson 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. It appears that Harley-Davidson insiders own 0.5% of the company, worth about US$36m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Harley-Davidson Tell Us?
An insider sold stock recently, but they haven’t been buying. But we take heart from prior transactions. We like that insiders own a fair amount of the company. So the recent selling doesn’t worry us too much. 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. Be aware that Harley-Davidson is showing 2 warning signs in our investment analysis, and 1 of those doesn’t sit too well with us…
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.
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