We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares in Hyster-Yale Materials Handling, Inc. (NYSE:HY).
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'
The Last 12 Months Of Insider Transactions At Hyster-Yale Materials Handling
The insider, Theodore Taplin, made the biggest insider sale in the last 12 months. That single transaction was for US$159k worth of shares at a price of US$65.25 each. So we know that an insider sold shares at around the present share price of US$56.03. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
Over the last year, we can see that insiders have bought 21699 shares worth US$1.4m. But insiders sold 4500 shares worth US$279k. Overall, Hyster-Yale Materials Handling insiders were net buyers last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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 Hyster-Yale Materials Handling Have Sold Stock Recently
The last quarter saw substantial insider selling of Hyster-Yale Materials Handling shares. In total, insider Theodore Taplin dumped US$55k 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.
Insider Ownership of Hyster-Yale Materials Handling
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's great to see that Hyster-Yale Materials Handling insiders own 24% of the company, worth about US$220m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Hyster-Yale Materials Handling Insider Transactions Indicate?
An insider sold Hyster-Yale Materials Handling shares recently, but they didn't buy any. But we take heart from prior transactions. And insider ownership remains quite considerable. So the recent selling doesn't worry us. Of course, the future is what matters most. So if you are interested in Hyster-Yale Materials Handling, you should check out this free report on analyst forecasts for the company.
But note: Hyster-Yale Materials Handling 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.