Despite a 3.0% gain in Halliburton Company (NYSE:HAL) stock price this week, shareholders are unlikely to let go. Even though stock prices were relatively low, insiders chose to sell US$862,000 worth of shares over the past year, which could indicate an expected slowdown.
Although we would never suggest that investors base their decisions solely on what a company’s directors have done, logic dictates that you pay attention to whether insiders are buying or selling shares.
See our latest analysis for Halliburton
Insider trading at Halliburton over the past year
Over the past year, we can see that the largest insider sale was by independent director, Murry Gerber, for US$862,000 worth of stock, at around US$19.33 per share. This means that an insider was selling shares at a price slightly lower than the current price (US$29.46). When an insider sells below the current price, it suggests that they consider this lower price to be fair. This makes us wonder what they think of the recent (higher) valuation. However, while insider selling is sometimes discouraging, this is only a weak signal. This single sale represented only 7.6% of Murry Gerber’s stake. The only individual insider salesperson in the past year was Murry Gerber.
You can see a visual representation of insider trading (by companies and individuals) over the past 12 months, below. By clicking on the graph below, you will be able to see the precise detail of each insider trade!
If you’re like me, then you not want to miss this free list of growing companies insiders are buying.
Does Halliburton boast of high insider ownership?
For an ordinary shareholder, it is worth checking how many shares are held by company insiders. We generally like to see fairly high levels of insider ownership. It’s great to see that Halliburton insiders own 0.4% of the company, worth around $101 million. This type of significant insider ownership generally increases the chances that the company will be run in the best interests of all shareholders.
So what does this data suggest about Halliburton insiders?
The fact that there have been no Halliburton insider trades recently certainly doesn’t bother us. It’s encouraging to see that insiders own a lot of stock, but we’d like to see more insider buying, because the last year of insider trading at Halliburton doesn’t fill us with confidence. So, while it is useful to know what insiders are doing in terms of buying or selling, it is also useful to know the risks that a particular company faces. For example, we have identified 3 warning signs for Halliburton (1 cannot be ignored) which you should be aware of.
But note: Halliburton may not be the best stock to buy. So take a look at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.