Those following along with HC2 Holdings, Inc. (NYSE:HCHC) will no doubt be intrigued by the recent purchase of shares by Avram Glazer, Independent Chairman of the Board of the company, who spent a stonking US$1.7m on stock at an average price of US$2.83. Not only is that a big swing, but it increased their holding size by 24%, which is definitely great to see.
HC2 Holdings Insider Transactions Over The Last Year
Notably, that recent purchase by Avram Glazer is the biggest insider purchase of HC2 Holdings shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$3.23. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.
In the last twelve months insiders purchased 889.97k shares for US$2.7m. But insiders sold 40000 shares worth US$118k. In total, HC2 Holdings insiders bought more than they sold over the 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 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).
Insider Ownership of HC2 Holdings
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that HC2 Holdings insiders own 13% of the company, worth about US$19m. 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 HC2 Holdings Tell Us?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Insiders likely see value in HC2 Holdings shares, given these transactions (along with notable insider ownership of the company). While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - HC2 Holdings has 3 warning signs we think you should be aware of.
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. 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. Thank you for reading.