Yahoo Finance Heartland Express Insiders Placed Bullish Bets Worth US$15.3m
Quite a few insiders have dramatically grown their holdings in Heartland Express, Inc. (NASDAQ:HTLD) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Heartland Express
Heartland Express Insider Transactions Over The Last Year
The Chairman of the Board Michael Gerdin made the biggest insider purchase in the last 12 months. That single transaction was for US$2.9m worth of shares at a price of US$14.87 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$11.61). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
While Heartland Express insiders bought shares during the last year, they didn't sell. Their average price was about US$12.94. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insiders At Heartland Express Have Bought Stock Recently
It's good to see that Heartland Express insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought US$4.1m worth of shares. This makes one think the business has some good points.
Insider Ownership Of Heartland Express
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. Heartland Express insiders own 21% of the company, currently worth about US$189m based on the recent share price. 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 Does This Data Suggest About Heartland Express Insiders?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Heartland Express insiders are well aligned, and quite possibly think the share price is too low. Nice! Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Heartland Express.
Of course Heartland Express 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
