Yahoo Finance Even with The Home Depot, Inc. (NYSE:HD) stock down 6.3% this week, insiders who bought recently netted around US$29k
Insiders who purchased The Home Depot, Inc. (NYSE:HD) shares in the past 12 months are unlikely to be deeply impacted by the stock's 6.3% decline over the past week. After taking the recent loss into consideration, the US$432k worth of stock they bought is now worth US$460k, indicating that their investment yielded a positive return.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Home Depot
The Last 12 Months Of Insider Transactions At Home Depot
The insider Caryn Seidman Becker made the biggest insider purchase in the last 12 months. That single transaction was for US$432k worth of shares at a price of US$288 each. So it's clear an insider wanted to buy, at around the current price, which is US$307. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Home Depot share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was Caryn Seidman Becker.
The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Home Depot is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Home Depot Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Home Depot insiders own 0.07% of the company, worth about US$232m. 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 Do The Home Depot Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Home Depot shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Home Depot insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Home Depot. Case in point: We've spotted 1 warning sign for Home Depot you should be aware of.
But note: Home Depot 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.
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