Yahoo Finance Hargreaves Services Plc (LON:HSP) insider upped their holding by 63% earlier this year
Insiders were net buyers of Hargreaves Services Plc's (LON:HSP ) stock during the past year. That is, insiders bought more stock than they sold.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Hargreaves Services
Hargreaves Services Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Non-Executive Director Christopher Jones for UK£65k worth of shares, at about UK£2.70 per share. We do like to see buying, but this purchase was made at well below the current price of UK£4.10. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Christopher Jones bought 24.44k shares over the last 12 months at an average price of UK£2.70. 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!
Hargreaves Services is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Hargreaves Services insiders own 9.7% of the company, worth about UK£13m. 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 Does This Data Suggest About Hargreaves Services Insiders?
It doesn't really mean much that no insider has traded Hargreaves Services shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Hargreaves Services and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 3 warning signs for Hargreaves Services (1 is potentially serious!) and we strongly recommend you look at them before investing.
But note: Hargreaves Services may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
