This Insider Has Just Sold Shares In Heritage Global

Anyone interested in Heritage Global Inc. (NASDAQ:HGBL) should probably be aware that the President, Ross Dove, recently divested US$399k worth of shares in the company, at an average price of US$1.33 each. That sale was 13% of their holding, so it does make us raise an eyebrow.

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The Last 12 Months Of Insider Transactions At Heritage Global

Notably, that recent sale by Ross Dove is the biggest insider sale of Heritage Global 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$1.30. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Happily, we note that in the last year insiders paid US$131k for 116.00k shares. But insiders sold 300.00k shares worth US$399k. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Heritage Global

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).

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that Heritage Global insiders own 15% of the company, worth about US$6.5m. We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At Heritage Global Tell Us?

The stark truth for Heritage Global is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn't give us much comfort. When you consider that most companies have higher levels of insider ownership, we're a little wary. We'd certainly practice some caution before buying! 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 assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Heritage Global.

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.

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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.