Yahoo Finance Insiders who bought stock earlier this year lose -US$239k as Harsco Corporation (NYSE:HSC) drops to US$416m
Insiders who bought US$418k worth of Harsco Corporation's (NYSE:HSC) stock at an average buy price of US$12.28 over the last year may be disappointed by the recent 11% decrease in the stock. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth US$178k, which is not great.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Harsco
Harsco Insider Transactions Over The Last Year
The Chairman F. Grasberger made the biggest insider purchase in the last 12 months. That single transaction was for US$298k worth of shares at a price of US$11.92 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$5.24). 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.
In the last twelve months Harsco insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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 Harsco
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Harsco insiders own about US$7.4m worth of shares (which is 1.8% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Do The Harsco Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Harsco stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Harsco. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Harsco.
Of course Harsco 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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