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Bargain Hunters Take Note: Insider Cluster-Buying At HI

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A particularly strong insider buying signal is what we call a "cluster-buy" where three or more different insiders make open market purchases within a short period of one another. At Hillenbrand Inc (NYSE:HI), 3 different insiders purchased 10,902 shares at an average price of $38.90/share, for a total of $424,091, with the most recent purchase on December 7, 2023.

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Ten Bargains You Can Buy Cheaper Than The Insiders Did »

Presumably the only reason an insider would take their hard-earned cash and use it to buy stock of their company in the open market, is that they expect to make money. So when multiple insiders all decide to make purchases around the same time, it could be a strong indication that the stock is undervalued. Below is a table summarizing the insider buys that make up this "cluster":

The chart below shows the one year performance of HI shares, versus its 200 day moving average. Note that HI's low point in its 52 week range is $37.19 per share, with $53.76 as the 52 week high point — that compares with a last trade of $40.82, with shares currently trading up about 0.4% on the day.

The current annualized dividend paid by Hillenbrand Inc is $0.89/share, currently paid in quarterly installments, and its most recent dividend has an upcoming ex-date of 12/14/2023. Below is a long-term dividend history chart for HI, which can be of good help in judging whether the most recent dividend with approx. 2.2% annualized yield is likely to continue.