Graham Holdings Company (NYSE:GHC) drops to US$2.8b and insiders who purchased earlier this year lose another US$1.7k
The recent 3.2% drop in Graham Holdings Company's (NYSE:GHC) stock could come as a blow to insiders who purchased US$94k worth of stock at an average buy price of US$586 over the past 12 months. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only US$92k.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Graham Holdings
Graham Holdings Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the VP & Chief Accounting Officer, Marcel Snyman, sold US$77k worth of shares at a price of US$605 per share. So what is clear is that an insider saw fit to sell at around the current price of US$575. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. 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. Marcel Snyman was the only individual insider to sell over the last year.
Happily, we note that in the last year insiders paid US$94k for 160.00 shares. But they sold 134.00 shares for US$81k. Overall, Graham Holdings insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Graham Holdings Insiders Bought Stock Recently
There was some insider buying at Graham Holdings over the last quarter. In that period insiders spent US$94k on shares. But VP & Chief Accounting Officer Marcel Snyman sold US$77k worth. While it's good to see the insider buying, the net amount bought isn't enough for us to gain much confidence from it.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Graham Holdings insiders own 15% of the company, worth about US$435m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Graham Holdings Tell Us?
Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like Graham Holdings insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Graham Holdings. You'd be interested to know, that we found 1 warning sign for Graham Holdings and we suggest you have a look.
Of course Graham Holdings 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, but not derivative transactions.
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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.
