Yahoo Finance One Hennessy Advisors Insider Raised Their Stake In The Previous Year
From what we can see, insiders were net buyers in Hennessy Advisors, Inc.'s (NASDAQ:HNNA ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Hennessy Advisors
Hennessy Advisors Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the insider, Rodger Offenbach, for US$67k worth of shares, at about US$6.72 per share. That means that an insider was selling shares at slightly below the current price (US$7.40). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. It is worth noting that this sale was only 8.3% of Rodger Offenbach's holding. Rodger Offenbach was the only individual insider to sell over the last year.
The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Hennessy Advisors better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Insider Ownership Of Hennessy Advisors
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Hennessy Advisors insiders own about US$22m worth of shares. That equates to 40% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Hennessy Advisors Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Hennessy Advisors shares in the last quarter. Our analysis of Hennessy Advisors insider transactions leaves us cautious. The modest level of insider ownership is, at least, some comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Hennessy Advisors. Our analysis shows 2 warning signs for Hennessy Advisors (1 is significant!) and we strongly recommend you look at these before investing.
Of course Hennessy Advisors 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
