Insiders were net sellers of HEICO Corporation's (NYSE:HEI ) stock during the past year. That is, insiders sold more stock than they bought.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for HEICO
HEICO Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Independent Director, Alan Schriesheim, sold US$3.3m worth of shares at a price of US$167 per share. That means that an insider was selling shares at around the current price of US$164. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive). Alan Schriesheim was the only individual insider to sell shares in the last twelve months.
In the last twelve months insiders purchased 11.88k shares for US$1.9m. On the other hand they divested 37.00k shares, for US$6.2m. Alan Schriesheim divested 37.00k shares over the last 12 months at an average price of US$167. The chart below shows insider transactions (by companies and individuals) over the last year. 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.
HEICO Insiders Are Selling The Stock
The last quarter saw substantial insider selling of HEICO shares. Specifically, Independent Director Alan Schriesheim ditched US$328k 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.
Does HEICO Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. HEICO insiders own 14% of the company, currently worth about US$2.8b 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 Does This Data Suggest About HEICO Insiders?
An insider hasn't bought HEICO stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that HEICO is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for HEICO.
Of course HEICO 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 of direct interests only, but not derivative transactions or indirect interests.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.