We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Hamilton Beach Brands Holding Company (NYSE:HBB).
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
The Last 12 Months Of Insider Transactions At Hamilton Beach Brands Holding
President Gregory Trepp made the biggest insider purchase in the last 12 months. That single transaction was for US$101k worth of shares at a price of US$16.86 each. That means that an insider was happy to buy shares at above the current price of US$15.08. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. 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.
In the last twelve months insiders purchased 18361 shares for US$295k. But insiders sold 3000 shares worth US$52k. In the last twelve months there was more buying than selling by Hamilton Beach Brands Holding insiders. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Hamilton Beach Brands Holding is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Hamilton Beach Brands Holding Insiders Bought Stock Recently
It's good to see that Hamilton Beach Brands Holding insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought US$107k worth of shares. This makes one think the business has some good points.
Does Hamilton Beach Brands Holding Boast High Insider Ownership?
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. Insiders own 30% of Hamilton Beach Brands Holding shares, worth about US$63m. 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 Hamilton Beach Brands Holding Tell Us?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of Hamilton Beach Brands Holding we think they are probably pretty confident of a bright future. Of course, the future is what matters most. So if you are interested in Hamilton Beach Brands Holding, you should check out this free report on analyst forecasts for the company.
But note: Hamilton Beach Brands Holding 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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If you spot an error that warrants correction, please contact the editor at email@example.com. 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.