Yahoo Finance Hopeful week for insiders who might be regretting buying UK£602k of Howden Joinery Group Plc (LON:HWDN) stock earlier this year
Insiders who bought UK£602k worth of Howden Joinery Group Plc (LON:HWDN) stock in the last year recovered part of their losses as the stock rose by 3.6% last week. However, the purchase is proving to be an expensive wager as insiders are yet to get ahead of their losses which currently stand at UK£127k since the time of purchase.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Howden Joinery Group
The Last 12 Months Of Insider Transactions At Howden Joinery Group
The CEO & Executive Director Andrew Livingston made the biggest insider purchase in the last 12 months. That single transaction was for UK£154k worth of shares at a price of UK£7.92 each. That means that an insider was happy to buy shares at above the current price of UK£6.10. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Howden Joinery Group insiders may have bought shares in the last year, but they didn't sell any. 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 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).
Howden Joinery Group Insiders Bought Stock Recently
We saw some Howden Joinery Group insider buying shares in the last three months. CEO & Executive Director Andrew Livingston purchased UK£33k worth of shares in that period. It's great to see that insiders are only buying, not selling. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.
Insider Ownership Of Howden Joinery Group
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 0.2% of Howden Joinery Group shares, worth about UK£7.7m, according to our data. We do generally prefer see higher levels of insider ownership.
So What Do The Howden Joinery Group Insider Transactions Indicate?
Our data shows a little insider buying, but no selling, in the last three months. Overall the buying isn't worth writing home about. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Howden Joinery Group insiders are doubting the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 2 warning signs (1 makes us a bit uncomfortable!) that you ought to be aware of before buying any shares in Howden Joinery Group.
But note: Howden Joinery Group 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.
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