Harvey Norman Holdings Limited (ASX:HVN) shareholders (or potential shareholders) will be happy to see that the Co-Founder, Gerald Harvey, recently bought a whopping AU$1.0m worth of stock, at a price of AU$4.45. While that only increased their holding size by 0.05%, it is still a big swing by our standards.
Harvey Norman Holdings Insider Transactions Over The Last Year
Notably, that recent purchase by Gerald Harvey is the biggest insider purchase of Harvey Norman Holdings shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is AU$4.58. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.
While Harvey Norman Holdings insiders bought shares during the last year, they didn't sell. They paid about AU$3.67 on average. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Harvey Norman Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Harvey Norman Holdings Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Harvey Norman Holdings insiders own 40% of the company, currently worth about AU$2.3b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Harvey Norman Holdings Insider Transactions Indicate?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Harvey Norman Holdings. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 3 warning signs for Harvey Norman Holdings (1 is a bit concerning!) that we believe deserve your full attention.
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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