We wouldn't blame Herc Holdings Inc. (NYSE:HRI) shareholders if they were a little worried about the fact that Lawrence Silber, the President recently netted about US$515k selling shares at an average price of US$129. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 1.8%.
View our latest analysis for Herc Holdings
In the last twelve months, the biggest single sale by an insider was when the insider, Mark Irion, sold US$551k worth of shares at a price of US$131 per share. That means that an insider was selling shares at around the current price of US$125. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
Herc Holdings insiders didn't buy any shares over the last year. 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
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. It appears that Herc Holdings insiders own 1.7% of the company, worth about US$59m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
An insider hasn't bought Herc Holdings stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Herc Holdings is growing earnings. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Herc Holdings. In terms of investment risks, we've identified 3 warning signs with Herc Holdings and understanding them should be part of your investment process.
But note: Herc 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.