Yahoo Finance Have Insiders Been Buying Houghton Mifflin Harcourt Company (NASDAQ:HMHC) Shares?
We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Houghton Mifflin Harcourt Company (NASDAQ:HMHC), you may well want to know whether insiders have been buying or selling.
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 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 Houghton Mifflin Harcourt
Houghton Mifflin Harcourt Insider Transactions Over The Last Year
President John Lynch made the biggest insider purchase in the last 12 months. That single transaction was for US$1.0m worth of shares at a price of US$8.89 each. That means that an insider was happy to buy shares at above the current price. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. We generally consider it a positive if insiders have been buying on market, even above the current price.
In the last twelve months insiders paid US$1.1m for 123.72k shares purchased. In the last twelve months there was more buying than selling by Houghton Mifflin Harcourt insiders. Their average price was about US$8.91. This is nice to see since it implies that insiders might see value around current prices (around US$8.16). You can see the insider transactions (by 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!
I will like Houghton Mifflin Harcourt better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own US$4.7m worth of Houghton Mifflin Harcourt stock, about 0.5% of the company. I generally like to see higher levels of ownership.
So What Does This Data Suggest About Houghton Mifflin Harcourt Insiders?
The fact that there have been no Houghton Mifflin Harcourt insider transactions recently certainly doesn’t bother us. But insiders have shown more of an appetite for the stock, over the last year. We’d like to see bigger individual holdings. However, we don’t see anything to make us think Houghton Mifflin Harcourt insiders are doubting the company. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
