We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we’ll take a look at whether insiders have been buying or selling shares in Horace Mann Educators Corporation (NYSE:HMN).
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, most countries require that the company discloses such transactions to the market.
We don’t think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. 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.’
Horace Mann Educators Insider Transactions Over The Last Year
Executive VP & CFO Bret Conklin made the biggest insider sale in the last 12 months. That single transaction was for US$191k worth of shares at a price of US$44.82 each. So what is clear is that an insider saw fit to sell at around the current price of US$39.71. While their view may have changed since the sale, this is not a particularly positive fact. We generally tread carefully if insiders have been selling on market, even if they sold slightly above the current price.
Over the last year, we note insiders sold 13.37k shares worth US$610k. In total, Horace Mann Educators insiders sold more than they bought over the last year. The average sell price was around US$45.64. It’s not particularly great to see insiders were selling shares around current prices. While some insiders have decided to take some money off the table, we wouldn’t put too much weight on this fact. 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!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Horace Mann Educators insiders own 0.8% of the company, worth about US$13m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
So What Do The Horace Mann Educators Insider Transactions Indicate?
The fact that there have been no Horace Mann Educators insider transactions recently certainly doesn’t bother us. Our analysis of Horace Mann Educators insider transactions leaves us cautious. The modest level of insider ownership is, at least, some comfort. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Horace Mann Educators.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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