Yahoo Finance Multiple insiders bought Benjamin Hornigold Limited (ASX:BHD) stock earlier this year, a positive sign for shareholders
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Benjamin Hornigold Limited's (ASX:BHD) case, it's fantastic news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Benjamin Hornigold
Benjamin Hornigold Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider Stuart McAuliffe bought AU$401k worth of shares at a price of AU$0.31 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.27). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. We note that Stuart McAuliffe was both the biggest buyer and the biggest seller.
Happily, we note that in the last year insiders paid AU$527k for 1.70m shares. On the other hand they divested 316.50k shares, for AU$84k. In total, Benjamin Hornigold insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insiders at Benjamin Hornigold Have Sold Stock Recently
We've seen more insider selling than insider buying at Benjamin Hornigold recently. In total, insider Stuart McAuliffe sold AU$84k worth of shares in that time. On the other hand we note Non-Executive Director Sulieman Ravell bought AU$7.3k worth of shares. Generally this level of net selling might be considered a bit bearish.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 25% of Benjamin Hornigold shares, worth about AU$1.6m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Benjamin Hornigold Tell Us?
The stark truth for Benjamin Hornigold is that there has been more insider selling than insider buying in the last three months. But we take heart from prior transactions. And insiders do own shares. So we're happy enough to look past some selling. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. When we did our research, we found 4 warning signs for Benjamin Hornigold (2 can't be ignored!) that we believe deserve your full attention.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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.
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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.
