We wouldn't blame Hewlett Packard Enterprise Company (NYSE:HPE) shareholders if they were a little worried about the fact that John Schultz, the Executive VP and Chief Operating & Legal Officer recently netted about US$5.7m selling shares at an average price of US$21.62. That's a big disposal, and it decreased their holding size by 49%, which is notable but not too bad.
Hewlett Packard Enterprise Insider Transactions Over The Last Year
In fact, the recent sale by John Schultz was the biggest sale of Hewlett Packard Enterprise shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (US$21.83). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 49% of John Schultz's stake.
Insiders in Hewlett Packard Enterprise didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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).
Does Hewlett Packard Enterprise 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.3% of Hewlett Packard Enterprise shares, worth about US$95m. 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 Do The Hewlett Packard Enterprise Insider Transactions Indicate?
Insiders haven't bought Hewlett Packard Enterprise stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But since Hewlett Packard Enterprise 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'd practice some caution before buying! 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. Case in point: We've spotted 1 warning sign for Hewlett Packard Enterprise you should be aware of.
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 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.
