It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Highwoods Properties, Inc.’s (NYSE:HIW) case, it’s fantastic news for shareholders.
Although we don’t think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Highwoods Properties
Highwoods Properties Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Chairman of the Board Carlos Evans for US$337k worth of shares, at about US$33.70 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$45.67. Because the shares were purchased at a lower price, this particular buy doesn’t tell us much about how insiders feel about the current share price.
Happily, we note that in the last year insiders paid US$435k for 13.00k shares. On the other hand they divested 1.26k shares, for US$55k. In total, Highwoods Properties insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
NYSE:HIW Insider Trading Volume August 28th 2021
Highwoods Properties is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Insiders own 1.3% of Highwoods Properties shares, worth about US$64m. 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 Does This Data Suggest About Highwoods Properties Insiders?
It doesn’t really mean much that no insider has traded Highwoods Properties shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in Highwoods Properties and we see no evidence to suggest they are worried about the future. So while it’s helpful to know what insiders are doing in terms of buying or selling, it’s also helpful to know the risks that a particular company is facing. To help with this, we’ve discovered 3 warning signs (2 can’t be ignored!) that you ought to be aware of before buying any shares in Highwoods Properties.
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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