Yahoo Finance Bullish Hanesbrands Inc. (NYSE:HBI) insiders filled their treasuries with US$831k worth of stock over last year
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Hanesbrands Inc.'s (NYSE:HBI) case, it's fantastic news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Hanesbrands
The Last 12 Months Of Insider Transactions At Hanesbrands
In the last twelve months, the biggest single purchase by an insider was when Independent Chairman Ronald Nelson bought US$305k worth of shares at a price of US$8.84 per share. That means that an insider was happy to buy shares at above the current price of US$5.05. 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. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months Hanesbrands insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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.
Does Hanesbrands Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.4% of Hanesbrands shares, worth about US$7.6m, according to our data. We do generally prefer see higher levels of insider ownership.
So What Do The Hanesbrands Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Hanesbrands shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it'd be more encouraging if Hanesbrands insiders bought more shares in 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. Case in point: We've spotted 1 warning sign for Hanesbrands you should be aware of.
Of course Hanesbrands may not be the best stock to buy. So you may wish to see this free collection of high quality 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. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
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