Don't Ignore The Insider Selling In Hamilton Beach Brands Holding
We note that the Hamilton Beach Brands Holding Company (NYSE:HBB) Senior VP, Sally Cunningham, recently sold US$98k worth of stock for US$32.50 per share. However we note that the sale only shrunk their holding by 7.1%.
The Last 12 Months Of Insider Transactions At Hamilton Beach Brands Holding
Notably, that recent sale by Sally Cunningham is the biggest insider sale of Hamilton Beach Brands Holding shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$31.45. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. 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).
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!
Check out our latest analysis for Hamilton Beach Brands Holding
I will like Hamilton Beach Brands Holding better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Insider Ownership Of Hamilton Beach Brands Holding
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. Hamilton Beach Brands Holding insiders own about US$117m worth of shares (which is 28% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Hamilton Beach Brands Holding Insider Transactions Indicate?
An insider hasn't bought Hamilton Beach Brands Holding stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But since Hamilton Beach Brands Holding is profitable and growing, we're not too worried by this. 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. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 2 warning signs for Hamilton Beach Brands Holding you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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.