Anyone interested in Hudson Pacific Properties, Inc. (NYSE:HPP) should probably be aware that the Executive Vice President of Finance, Sanford Shimoda, recently divested US$178k worth of shares in the company, at an average price of US$35.52 each. On the bright side, that sale was only 6.1% of their holding, so we doubt it's very meaningful, on its own.
Hudson Pacific Properties Insider Transactions Over The Last Year
The Chairman, Victor Coleman, made the biggest insider sale in the last 12 months. That single transaction was for US$2.3m worth of shares at a price of US$33.63 each. That means that even when the share price was below the current price of US$35.38, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 7.6% of Victor Coleman's holding.
Happily, we note that in the last year insiders paid US$277k for 9000 shares. But they sold 200679 for US$6.9m. Over the last year we saw more insider selling of Hudson Pacific Properties shares, than buying. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Hudson Pacific Properties better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Hudson Pacific Properties insiders own about US$70m worth of shares. That equates to 1.3% of the company. 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 Do The Hudson Pacific Properties Insider Transactions Indicate?
The insider sales have outweighed the insider buying, at Hudson Pacific Properties, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: Hudson Pacific Properties 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.
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