The Independent Non-Executive Director of Harvey Norman Holdings Limited (ASX:HVN), Maurice Craven, Just Bought 32% More Shares
Even if it's not a huge purchase, we think it was good to see that Maurice Craven, the Independent Non-Executive Director of Harvey Norman Holdings Limited (ASX:HVN) recently shelled out AU$50k to buy stock, at AU$5.12 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 32%.
Check out our latest analysis for Harvey Norman Holdings
Harvey Norman Holdings Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Co-Founder Gerald Harvey bought AU$2.0m worth of shares at a price of AU$4.94 per share. That means that an insider was happy to buy shares at around the current price of AU$4.96. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Harvey Norman Holdings insiders decided to buy shares at close to current prices.
Harvey Norman Holdings insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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.
Insider Ownership of Harvey Norman Holdings
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Harvey Norman Holdings insiders own about AU$2.5b worth of shares (which is 41% of the company). 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 Harvey Norman Holdings Insiders?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Harvey Norman Holdings. That's what I like to see! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. When we did our research, we found 2 warning signs for Harvey Norman Holdings (1 is a bit unpleasant!) that we believe deserve your full attention.
But note: Harvey Norman 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, 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.
