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Investors who take an interest in Harte Hanks, Inc. (NASDAQ:HHS) should definitely note that the Independent Director, Bradley Radoff, recently paid US$5.65 per share to buy US$242k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 12%.
See our latest analysis for Harte Hanks
Harte Hanks Insider Transactions Over The Last Year
Notably, that recent purchase by Independent Director Bradley Radoff was not the only time they bought Harte Hanks shares this year. Earlier in the year, they paid US$7.29 per share in a US$534k purchase. That means that an insider was happy to buy shares at above the current price of US$5.93. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
While Harte Hanks insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Harte Hanks is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Harte Hanks
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Harte Hanks insiders own 16% of the company, worth about US$6.7m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Harte Hanks Insider Transactions Indicate?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Harte Hanks insiders are well aligned, and that they may think the share price is too low. 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. Every company has risks, and we've spotted 1 warning sign for Harte Hanks you should know about.