Insiders of Huntsman Corporation (NYSE:HUN) reaped rewards after their US$752k investment jumped another US$49k
Insiders who bought Huntsman Corporation (NYSE:HUN) stock in the last 12 months were richly rewarded last week. The company's market value increased by US$265m as a result of the stock's 4.5% gain over the same period. As a result, their original purchase of US$752k worth of stock is now worth US$801k.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Huntsman
Huntsman Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Director Curtis Espeland for US$453k worth of shares, at about US$30.18 per share. That means that an insider was happy to buy shares at around the current price of US$32.04. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Huntsman insiders decided to buy shares at close to current prices.
Huntsman insiders may have bought shares in the last year, but they didn't sell any. 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!
Huntsman is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Huntsman Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Huntsman insiders own 6.1% of the company, worth about US$375m. 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 Huntsman Insiders?
The fact that there have been no Huntsman insider transactions recently certainly doesn't bother us. 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 Huntsman insiders think the business has merit. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 2 warning signs for Huntsman you should be aware of, and 1 of them makes us a bit uncomfortable.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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