We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we’ll take a look at whether insiders have been buying or selling shares in Hubbell Incorporated (NYSE:HUBB).
What Is Insider Selling?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. 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 it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
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The Last 12 Months Of Insider Transactions At Hubbell
In the last twelve months, the biggest single sale by an insider was when Senior Vice President of Human Resources Stephen Mais sold US$218k worth of shares at a price of US$136 per share. That is hardly a positive sign, even though it took place above the latest price (US$106). So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Stephen Mais.
Happily, we note that in the last year insiders paid US$518k for 4.99k shares. On the other hand they divested 1.61k shares, for US$218k. In total, Hubbell insiders bought more than they sold over the last year. They paid about US$104 on average. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price of US$106. You can see the insider transactions (by 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!
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.
Hubbell Insiders Bought Stock Recently
It’s good to see that Hubbell 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$202k worth of shares. This could be interpreted as suggesting a positive outlook.
Does Hubbell Boast High Insider Ownership?
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. It appears that Hubbell insiders own 0.6% of the company, worth about US$31m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Hubbell Insider Transactions Indicate?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Hubbell shares, given these transactions (along with notable insider ownership of the company). Of course, the future is what matters most. So if you are interested in Hubbell, you should check out this free report on analyst forecasts for the company.
Of course Hubbell may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.