A lot in the past year HP Inc. (NYSE:HPQ) insiders sold a substantial stake in the company, which may have caught the attention of shareholders. When assessing insider transactions, it is generally more advantageous to know if insiders are buying than to know if they are selling, as the latter can be open to many interpretations. However, if there is a lot of insider selling, shareholders should investigate more.

While insider transactions aren’t the be-all and end-all when it comes to long-term investing, logic dictates that you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for HP

HP Insider transactions over the past year

The independent director, Robert Bennett, has made the largest insider sale in the past twelve months. That single transaction involved $2.0 million worth of shares at a price of $30.01 each. So it’s clear that an insider wanted to take some money off the table, even below the current price of $36.97. As a general rule, we find it discouraging when insiders sell below the current price, as it suggests they were happy with a lower valuation. While insider selling can sometimes be discouraging, it is only a weak signal. This single sale amounted to 53% of Robert Bennett’s stake.

HP insiders haven’t bought any shares in the past year. The chart below shows insider transactions (by companies and individuals) over the past year. If you want to know exactly who sold, for how much and when, click on the graph below!

If you’re like me, you will too not don’t want to miss this free list of small cap stocks that are not only bought by insiders, but also have attractive valuations.

Insider owned by HP

Many investors like to check how much of a company is owned by insiders. We usually like to see quite high levels of insider ownership. HP insiders own about $72 million worth of stock. That amounts to 0.2% of the company. This level of insider ownership is good, but not particularly notable. It certainly suggests a reasonable degree of coordination.

What can the insider transactions at HP tell us?

The fact that there have been no HP insider transactions recently certainly doesn’t bother us. We don’t take much heart from the transactions by HP insiders. But we do like that insiders own a decent chunk of the company. So these insider transactions can help us build a thesis on the stock, but it’s also worth knowing what risks this company faces. For example, HP has 3 warning signs (and 1 that shouldn’t be ignored) that we think you should be aware of.

But beware: HP may not be the best stock to buy. So take a look at this free list of interesting companies with a high return on equity and a low debt burden.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. Currently, we only consider open market transactions and private dispositions involving direct interests, but not derivative transactions or indirect interests.

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This article from Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. We aim to provide you with targeted, long-term analysis based on fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or quality material. Simply Wall St has no positions in the stocks mentioned.