Insider Buying

Insider buying: Harley-Davidson CEO buys $1 million worth of stock

at Harley-Davidson Inc
(HOG:US)
12 months:
+9.11%
Activity:
Bullish
Pattern:
Purchase from CEO
News:
Q2 results
at Harley-Davidson Inc
(HOG:US)
12 months:
+9.11%
Activity:
Bullish
Pattern:
Purchase from CEO
News:
Q2 results
The image's background depicts a black motor bike , with the blog introduction mentioning the insider raised his holdings on top.

If a CEO is buying company shares, it’s often worth investigating the stock further. CEOs tend to have an intimate understanding of their businesses and are usually way ahead of analysts and portfolio managers when it comes to revenue and earnings trends.

In this report, we are going to highlight a large CEO purchase at Harley-Davidson Inc (HOG:US). Harley-Davidson is the parent company of Harley-Davidson Motor Company (HDMC), which manufactures and sells an expansive range of distinctive motorcycles, as well as motorcycle parts, accessories, and general merchandise. The company is listed on the New York Stock Exchange and currently has a market capitalization of $6.02 billion.

Insider buying at Harley-Davidson

Our insider transaction data shows that on September 2, CEO and President Jochen Zeitz purchased 25,750 HOG shares at a price of $38.94 per share. This trade cost the insider approximately $1.0 million and increased his holding to 508,870 shares.

Trading skill

This trade is worth highlighting due to the fact that Mr. Zeitz has made a number of well-timed stock purchases in the recent past. In August 2020, for example, the insider invested $2.0 million in HOG stock when it was trading near $28. Over the next nine months, the stock climbed up to near $50.

Additionally, Mr. Zeitz had made a substantial purchase here. Our Insider Model views this buying activity as bullish.

Full-year guidance reaffirmed

Harley-Davidson recently posted a solid set of Q2 results.

While sales for the period were down 5% year on year to $1,469 million due to a temporary production suspension, net income rose 5% year on year to $216 million. Diluted earnings per share came in at $1.46, well above the consensus forecast of $1.07.

Encouragingly, the company reaffirmed its guidance for the full year – despite the recent production setback – stating that for 2022, it expects to generate revenue growth of 5-10%. It also advised that it bought back $64 million worth of its own shares in the second quarter of 2022.

In light of this guidance, and the fact that the stock currently has a very low valuation, we see the insider buying here as a bullish indicator. 

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