When an individual insider buys shares, it’s generally not a big deal. However, when multiple insiders buy, as in the case of Hamelin Gold Limited (ASX:HMG) is sending a positive message to the company’s shareholders.
While we would never suggest that investors base their decisions solely on the actions of a company’s directors, we would think it would be foolish to ignore insider transactions entirely.
Check out our latest analysis for Hamelin Gold
The last 12 months of insider transactions at Hamelin Gold
Chief executive and chief executive Peter Bewick has made the biggest insider purchase of the last 12 months. This single transaction involved AU$90,000 worth of shares at a price of AU$0.10 each. This means that an insider was happy to buy shares at a price above the current price of AU$0.082. It’s entirely possible that they regret the purchase, but it’s more likely that they’re optimistic about the company. We always pay careful attention to the price that insiders pay when buying shares. Generally, we notice when insiders have bought shares at a price higher than the current price, as this suggests they believed the shares were worth buying, even at a higher price.
Hamelin Gold insiders may have bought shares in the last year, but haven’t sold any. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold how much and when, just click on the graphic below!
There are always a lot of stocks that insiders are buying. So if that suits your style, you can check or take a look at each inventory individually free List of companies. (Note: insiders bought them).
Insider ownership of Hamelin Gold
I like to look at how many shares insiders own in a company to get an idea of how aligned they are with insiders. Typically, the higher the insider ownership, the more likely it is that insiders will have an incentive to build the company for the long term. According to our data, insiders own 14% of Hamelin Gold shares, worth around AU$1.8m. Overall, this level of personal responsibility isn’t particularly impressive, but it’s definitely better than nothing!
So what does this data say about Hamelin Gold Insiders?
There have been no insider transactions in the last three months – that doesn’t mean much. But insiders have shown more interest in the stock over the last year. The transactions are fine, but it would be more encouraging if Hamelin Gold insiders bought more shares of the company. While we like to know what’s going on with the insider’s ownership and transactions, we also consider the risks facing a stock before making an investment decision. Our analysis shows 3 warning signs for Hamelin Gold (2 are a bit uncomfortable!) and we highly recommend you check them out before investing.
Naturally Hamelin Gold may not be the best stock to buy. Maybe you would like to see this free Collection of high quality companies.
Insiders within the meaning of this article are persons who report their transactions to the relevant supervisory authority. We currently only consider open market transactions and private dispositions of direct holdings, but not derivative transactions or indirect holdings.
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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 does not constitute a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term focused analysis based on fundamental data. Note that our analysis may not reflect the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.