Investors who take an interest in HEICO Corporation (NYSE:HEI) should definitely note that the Independent Director, Alan Schriesheim, recently paid US$111 per share to buy US$109k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 8.6%.
The Last 12 Months Of Insider Transactions At HEICO
In fact, the recent purchase by Independent Director Alan Schriesheim was not their only acquisition of HEICO shares this year. Earlier in the year, they paid US$121 per share in a US$115k purchase. That means that an insider was happy to buy shares at above the current price of US$115. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Over the last year, we can see that insiders have bought 15.42k shares worth US$1.8m. But they sold 700.00 shares for US$60k. In the last twelve months there was more buying than selling by HEICO insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
HEICO 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.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. HEICO insiders own 14% of the company, currently worth about US$2.0b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At HEICO Tell Us?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about HEICO. Looks promising! Of course, the future is what matters most. So if you are interested in HEICO, you should check out this free report on analyst forecasts for the company.
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.
This article by Simply Wall St is general in nature. 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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