Yahoo Finance Did WhiteHawk Limited (ASX:WHK) Insiders Buy Up More Shares?
We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we’ll take a look at whether insiders have been buying or selling shares in WhiteHawk Limited (ASX:WHK).
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Colombia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
Check out our latest analysis for WhiteHawk
The Last 12 Months Of Insider Transactions At WhiteHawk
Darren Carter made the biggest insider purchase in the last 12 months. That single transaction was for AU$629k worth of shares at a price of AU$0.22 each. That means that even when the share price was higher, an insider wanted to purchase shares. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. It’s not at all bad to see insiders buy shares at or above current prices. Darren Carter was the only individual insider to buy over the year. Notably Darren Carter was also the biggest seller, having sold AU$398k worth of shares.
Darren Carter bought a total of 19.06m shares over the year at an average price of AU$0.08. The chart below shows insider transactions over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
WhiteHawk is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
WhiteHawk Insiders Bought Stock Recently
Over the last three months, we’ve seen a bit of insider buying at WhiteHawk. Darren Carter bought US$439k worth of shares in that time. However, Darren Carter netted US$398k for sales. While it’s good to see the insider buying, the net amount bought isn’t enough for us to gain much confidence from it.
Insider Ownership of WhiteHawk
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It’s great to see that WhiteHawk insiders own 29% of the company, worth about AU$2.0m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About WhiteHawk Insiders?
Our data shows a little more insider buying than selling in the last three months. But the difference isn’t much. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in WhiteHawk and their transactions don’t cause us concern. I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow for free .
Of course WhiteHawk may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
