Top-level corporate insiders know their companies more intimately than anyone else. They also have access to real-time information that outsiders are unlikely to have access to. If these insiders are buying stock, it’s generally a positive development.
Here, we are going to highlight a large insider 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, general merchandise, and related services. The company is listed on the New York Stock Exchange and currently has a market capitalization of $5.2 billion.
Harley-Davidson Inc: Insider Buying
Our records show that on 4 February, Harley-Davidson Chairman, CEO, and President Jochen Zeitz bought 30,800 HOG shares at a price of $32.47 per share. This purchase cost the insider $1.0 million.
High Trading IQ
This insider purchase is worth highlighting due to the fact that last year, Zeitz made a number of purchases that were timed very well.
In May, for example, the insider purchased 97,850 shares at a price of $21.26 per share. Over the next three months, HOG stock rose about 30%.
Meanwhile, in August, he purchased 71,450 shares at a price of $27.86 per share. Over the next four months, HOG stock rose about 35%.
This latest purchase has increased the size of his holding by 14%, which suggests the insider remains confident about the future.
New Strategic PlanHarley-Davidson recently launched a new five-year strategic growth plan named ‘The Hardwire.’ To enhance its position as a leader in the motorcycle industry, the group plans to:
- Invest significant time and resources on strengthening and growing its leadership positions in its strongest, most profitable motorcycle segments: Touring, large Cruiser, and Trike.
- Selectively expand into and within motorcycle segments and redefine its geographic footprint to focus on global markets that can drive future growth. Priority markets include US, DACH (Germany, Austria, Switzerland), Japan, China, Canada, France, UK, Italy, Australia, and New Zealand.
- Invest in leading the electric motorcycle market. As part of its commitment to lead in electric, it is creating a separate division solely dedicated to delivering the most desirable electric motorcycles in the world.
The recent $1.0 million purchase from Zeitz suggests that he has confidence in this growth strategy. We see this insider purchase as bullish.