Those following along with Hillenbrand, Inc. (NYSE:HI) will no doubt be intrigued by the recent purchase of shares by Robert VanHimbergen, CFO & Senior VP of the company, who spent a stonking US$512k on stock at an average price of US$45.23. Not only is that a big swing, but it increased their holding size by 49%, which is definitely great to see.
Hillenbrand Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the insider, Ling An-Heid, sold US$524k worth of shares at a price of US$52.45 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$46.33). So it is hard to draw any strong conclusion from it.
Over the last year, we can see that insiders have bought 35.47k shares worth US$1.5m. But insiders sold 18.00k shares worth US$939k. In total, Hillenbrand insiders bought more than they sold 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Hillenbrand Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Hillenbrand insiders own about US$32m worth of shares. That equates to 1.0% 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 Do The Hillenbrand Insider Transactions Indicate?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of Hillenbrand we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Hillenbrand. For instance, we've identified 3 warning signs for Hillenbrand (1 can't be ignored) you should be aware of.
But note: Hillenbrand 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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