Yahoo Finance Insiders See US$526.2k Investment In Hippo Holdings Jump Last Week
Hippo Holdings Inc. (NYSE:HIPO) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 23% resulting in a US$87m addition to the company’s market value. In other words, the original US$526.2k purchase is now worth US$965.5k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Hippo Holdings
The Last 12 Months Of Insider Transactions At Hippo Holdings
In the last twelve months, the biggest single purchase by an insider was when Independent Director John Nichols bought US$317k worth of shares at a price of US$10.83 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$19.31. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
John Nichols bought a total of 50.00k shares over the year at an average price of US$10.52. 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!
Hippo Holdings is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders At Hippo Holdings Have Sold Stock Recently
Over the last three months, we've seen significant insider selling at Hippo Holdings. In total, Chief Revenue Officer Yuval Harry dumped US$294k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Hippo Holdings insiders own 13% of the company, worth about US$64m. 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 Hippo Holdings Insider Transactions Indicate?
An insider sold Hippo Holdings shares recently, but they didn't buy any. On the other hand, the insider transactions over the last year are encouraging. And insiders do own shares. So we're not overly bothered by recent selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for Hippo Holdings you should be aware of.
But note: Hippo Holdings 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 of direct interests only, but not derivative transactions or indirect interests.
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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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