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Huntsman Corporation (NYSE:HUN) shareholders (or potential shareholders) will be happy to see that the Chairman, Peter Huntsman, recently bought a whopping US$503k worth of stock, at a price of US$11.19. While that only increased their holding size by 0.6%, it is still a big swing by our standards.
We've discovered 2 warning signs about Huntsman. View them for free.
The Last 12 Months Of Insider Transactions At Huntsman
Notably, that recent purchase by Peter Huntsman is the biggest insider purchase of Huntsman shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is US$12.05. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Huntsman share holders is that insiders were buying at near the current price.
In the last twelve months insiders purchased 119.50k shares for US$1.5m. On the other hand they divested 20.20k shares, for US$433k. Overall, Huntsman insiders were net buyers during the last year. They paid about US$12.80 on average. These transactions suggest that insiders have considered the current price attractive. 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 Huntsman
Huntsman is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership Of Huntsman
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that Huntsman insiders own 5.7% of the company, worth about US$118m. 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 Huntsman Tell Us?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Huntsman. Looks promising! 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 2 warning signs for Huntsman you should be aware of.