Yahoo Finance Herbalife Independent Director Acquires 60% More Stock
Potential Herbalife Ltd. (NYSE:HLF) shareholders may wish to note that the Independent Director, Donal Mulligan, recently bought US$290k worth of stock, paying US$9.65 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 60%.
View our latest analysis for Herbalife
The Last 12 Months Of Insider Transactions At Herbalife
Over the last year, we can see that the biggest insider purchase was by Chairman & CEO Michael Johnson for US$498k worth of shares, at about US$8.07 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$10.06. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
In the last twelve months Herbalife insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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).
Does Herbalife Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 1.1% of Herbalife shares, worth about US$12m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Herbalife Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Insiders likely see value in Herbalife shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Herbalife. Case in point: We've spotted 4 warning signs for Herbalife you should be aware of, and 2 of them are a bit concerning.
Of course Herbalife 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.
