We'd be surprised if Heidrick & Struggles International, Inc. (NASDAQ:HSII) shareholders haven't noticed that the Chief Human Resources Officer, Sarah Payne, recently sold US$351k worth of stock at US$40.40 per share. The eyebrow raising move amounted to a reduction of 36% in their holding.

The Last 12 Months Of Insider Transactions At Heidrick & Struggles International

Notably, that recent sale by Sarah Payne is the biggest insider sale of Heidrick & Struggles International shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$38.26. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In total, Heidrick & Struggles International insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does Heidrick & Struggles International 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. Insiders own 3.0% of Heidrick & Struggles International shares, worth about US$23m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Heidrick & Struggles International Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Heidrick & Struggles International stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 3 warning signs with Heidrick & Struggles International and understanding them should be part of your investment process.

But note: Heidrick & Struggles International 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 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com