Will Insiders Be Tempted To Buy More HR At The New 52-Week Low?

In trading on Friday, shares of Healthcare Realty Trust, Inc. (HR) touched a new 52-week low of $23.18/share. That's a $8.02 share price drop, or -25.71% decline from the 52-week high of $31.20 set back on 01/28/2015. Large percentage drops always require that the stock post even larger percentage gains from the low in order to recover the old price point, and for HR that means the stock would have to gain 34.60% to get back to the 52-week high. For a move like that, Healthcare Realty Trust, Inc. would need fundamental strength at the business level.

Here's a rhetorical question: Who knows more about fundamentals at the business level than the company's own insiders? So let's take a look to see whether any company insiders were taking the other side of the trade as HR shares were being sold down to this new 52-week low, focusing on the most recent trailing six month period. As summarized by the table below, HR has seen 3 different instances of insiders buying over the past six months.

START SLIDESHOW:
Ten Bargains You Can Buy Cheaper Than The Insiders Did »

Purchased Insider Title Shares Price/Share Value
01/01/2015 B. Douglas Whitman II Executive V.P. - Corp Finance 1,173 $18.11 $21,243.03
03/10/2015 John Knox Singleton Director 379 $26.42 $10,000.00
03/31/2015 John M. Bryant Jr. Executive Vice President & GC 1,041 $20.41 $21,246.81

In the short run, while the new 52-week low suggests the stock is at the cheapest price and perhaps therefore the best bargain it has been over the last 52 weeks, the low print also means anyone who has purchased the stock over that timeframe is staring at an unrealized loss. Oftentimes, that factor drives a stock's technical analysis metrics by creating overhead resistance, with investors who bought higher now anxious to reverse their trade once they are back to breakeven. The chart below shows where HR has traded over the past year, with the 50-day and 200-day moving averages included.

Healthcare Realty Trust, Inc. Moving Averages Chart

Time will tell whether the insider purchases foretell a future rebound for HR shares, which are presently showing a last trade of $23.55/share, slightly above the new 52-week low.

More from Stocks

Why The FANG Stocks' Dominance May Not Be So Bad For The Market

Why The FANG Stocks' Dominance May Not Be So Bad For The Market

Danica Patrick's Final Race at 2018 Indianapolis 500: What She Thinks About Cars

Danica Patrick's Final Race at 2018 Indianapolis 500: What She Thinks About Cars

At End of May, Investors Signalling They May Stay Away

At End of May, Investors Signalling They May Stay Away

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Neel Kashkari: The Heart of Our Financial System Is More Radioactive Than Ever

Neel Kashkari: The Heart of Our Financial System Is More Radioactive Than Ever