Jochen Zeitz Is The Chairman of Harley-Davidson, Inc. (NYSE:HOG) And They Just Picked Up 5.3% More Shares
Those following along with Harley-Davidson, Inc. (NYSE:HOG) will no doubt be intrigued by the recent purchase of shares by Jochen Zeitz, Chairman of the company, who spent a stonking US$1.0m on stock at an average price of US$38.94. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 5.3%.
See our latest analysis for Harley-Davidson
The Last 12 Months Of Insider Transactions At Harley-Davidson
In fact, the recent purchase by Jochen Zeitz was the biggest purchase of Harley-Davidson shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$39.79 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Harley-Davidson share holders is that insiders were buying at near the current price.
Over the last year, we can see that insiders have bought 27.09k shares worth US$1.1m. But insiders sold 8.61k shares worth US$346k. Overall, Harley-Davidson insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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).
Insider Ownership Of Harley-Davidson
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. Insiders own 0.6% of Harley-Davidson shares, worth about US$32m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Harley-Davidson Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Harley-Davidson we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 2 warning signs for Harley-Davidson (1 is potentially serious!) that we believe deserve your full attention.
Of course Harley-Davidson 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.
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