Yahoo Finance Have Insiders Been Buying Heidrick & Struggles International, Inc. (NASDAQ:HSII) Shares?
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 we'll take a look at whether insiders have been buying or selling shares in Heidrick & Struggles International, Inc. (NASDAQ:HSII).
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.
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'.
View our latest analysis for Heidrick & Struggles International
The Last 12 Months Of Insider Transactions At Heidrick & Struggles International
Over the last year, we can see that the biggest insider purchase was by Independent Chairman of the Board Adam Warby for US$115k worth of shares, at about US$22.99 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$21.73). 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. To us, it's very important to consider the price insiders pay for 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.
Heidrick & Struggles International insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and 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!
Heidrick & Struggles International is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Based on our data, Heidrick & Struggles International insiders have about 1.1% of the stock, worth approximately US$4.7m. We consider this fairly low insider ownership.
So What Do The Heidrick & Struggles International Insider Transactions Indicate?
The fact that there have been no Heidrick & Struggles International insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if Heidrick & Struggles International insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Heidrick & Struggles International. At Simply Wall St, we found 3 warning signs for Heidrick & Struggles International that deserve your attention before buying any shares.
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.
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.
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