Yahoo Finance Despite Hillgrove Resources Limited's recent decline, insiders have made a around AU$127k profit after buying earlier this year.
Hillgrove Resources Limited (ASX:HGO) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 12% decline in the stock price. After taking the recent loss into consideration, the AU$326k worth of stock they bought is now worth AU$453k, indicating that their investment yielded a positive return.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Hillgrove Resources
Hillgrove Resources Insider Transactions Over The Last Year
Notably, that recent sale by Susan Munro is the biggest insider sale of Hillgrove Resources shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of AU$0.051. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 5.2% of Susan Munro's stake.
In the last twelve months insiders purchased 8.89m shares for AU$326k. On the other hand they divested 3.39m shares, for AU$169k. Overall, Hillgrove Resources insiders were net buyers during the last year. They paid about AU$0.037 on average. We don't deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders at Hillgrove Resources Have Sold Stock Recently
We have seen a bit of insider selling at Hillgrove Resources, over the last three months. insider Susan Munro sold AU$169k worth of shares in that time. But at least we saw AU$118k worth of buying. While it's not great to see insider selling, the net amount sold isn't enough for us to want to read anything into it.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Our data indicates that Hillgrove Resources insiders own about AU$8.4m worth of shares (which is 14% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Hillgrove Resources Insider Transactions Indicate?
Unfortunately, there has been more insider selling of Hillgrove Resources stock, than buying, in the last three months. But we take heart from prior transactions. Still, insiders don't own a great deal of the stock. So we can't be sure that insiders are optimistic. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For instance, we've identified 6 warning signs for Hillgrove Resources (3 are a bit concerning) you should be aware of.
Of course Hillgrove Resources may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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