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Don't Ignore The Insider Selling In Huron Consulting Group

ヒューロンコンサルティンググループでのインサイダーセリングを無視しないでください

Simply Wall St ·  11/12 05:53

Anyone interested in Huron Consulting Group Inc. (NASDAQ:HURN) should probably be aware that the Vice Chairman, James Roth, recently divested US$257k worth of shares in the company, at an average price of US$128 each. However, the silver lining is that the sale only reduced their total holding by 3.8%, so we're hesitant to read anything much into it, on its own.

The Last 12 Months Of Insider Transactions At Huron Consulting Group

The Independent Director, Ekta Singh-Bushell, made the biggest insider sale in the last 12 months. That single transaction was for US$633k worth of shares at a price of US$106 each. That means that even when the share price was below the current price of US$130, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 38% of Ekta Singh-Bushell's stake.

In the last year Huron Consulting Group insiders didn't buy any company stock. 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!

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NasdaqGS:HURN Insider Trading Volume November 12th 2024

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Does Huron Consulting Group Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Huron Consulting Group insiders own about US$43m worth of shares. That equates to 2.1% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Huron Consulting Group Tell Us?

An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. But since Huron Consulting Group is profitable and growing, we're not too worried by this. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! While it's good to be aware of 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. While conducting our analysis, we found that Huron Consulting Group has 2 warning signs and it would be unwise to ignore these.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

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