Yahoo Finance Bullish insiders bet US$2.4m on Herbalife Nutrition Ltd. (NYSE:HLF)
In the last year, multiple insiders have substantially increased their holdings of Herbalife Nutrition Ltd. (NYSE:HLF) stock, indicating that insiders' optimism about the company's prospects has increased.
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 Herbalife Nutrition
Herbalife Nutrition Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when President John DeSimone bought US$937k worth of shares at a price of US$21.54 per share. So it's clear an insider wanted to buy, at around the current price, which is US$21.80. 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 do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Herbalife Nutrition insiders decided to buy shares at close to current prices.
In the last twelve months Herbalife Nutrition insiders were buying shares, but not selling. They paid about US$25.65 on average. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Herbalife Nutrition is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Herbalife Nutrition Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Herbalife Nutrition. In total, insiders bought US$1.7m worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.
Does Herbalife Nutrition Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Herbalife Nutrition insiders own about US$37m worth of shares. That equates to 1.7% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Herbalife Nutrition Insiders?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Herbalife Nutrition shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Herbalife Nutrition. Our analysis shows 3 warning signs for Herbalife Nutrition (2 are a bit concerning!) and we strongly recommend you look at them before investing.
Of course Herbalife Nutrition 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.
