Highwoods Properties, Inc. (NYSE:HIW) drops to US$2.9b and insiders who purchased earlier this year lose another US$10k
The recent 11% drop in Highwoods Properties, Inc.'s (NYSE:HIW) stock could come as a blow to insiders who purchased US$170k worth of stock at an average buy price of US$28.25 over the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth US$159k, which is not what they expected.
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.
View our latest analysis for Highwoods Properties
The Last 12 Months Of Insider Transactions At Highwoods Properties
Notably, that recent purchase by Theodore Klinck is the biggest insider purchase of Highwoods Properties shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$26.53). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Over the last year, we can see that insiders have bought 6.00k shares worth US$170k. But they sold 650.00 shares for US$20k. In total, Highwoods Properties insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Highwoods Properties is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Highwoods Properties Insiders Bought Stock Recently
There has been significantly more insider buying, than selling, at Highwoods Properties, over the last three months. Insiders spent US$170k on shares. On the other hand, Independent Director David Gadis netted US$20k by selling. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.
Insider Ownership Of Highwoods Properties
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 1.3% of Highwoods Properties shares, worth about US$37m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Highwoods Properties Insiders?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Insiders likely see value in Highwoods Properties shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Highwoods Properties. To that end, you should learn about the 3 warning signs we've spotted with Highwoods Properties (including 2 which can't be ignored).
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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