Yahoo Finance With Hummingbird Resources Up 11%, Insider Buyers Count Their Returns
Insiders who bought Hummingbird Resources PLC (LON:HUM) stock in the last 12 months were richly rewarded last week. The company's market value increased by UK£8.9m as a result of the stock's 11% gain over the same period. Put another way, the original US$134k acquisition is now worth US$341k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Hummingbird Resources
The Last 12 Months Of Insider Transactions At Hummingbird Resources
In the last twelve months, the biggest single purchase by an insider was when Independent Non Executive Director Stephen Betts bought UK£59k worth of shares at a price of UK£0.059 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£0.15. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Over the last year, we can see that insiders have bought 2.26m shares worth UK£134k. On the other hand they divested 23.93k shares, for UK£1.7k. In the last twelve months there was more buying than selling by Hummingbird Resources insiders. 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!
Hummingbird Resources 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.
Does Hummingbird Resources Boast High 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. Our data suggests Hummingbird Resources insiders own 1.5% of the company, worth about UK£1.4m. However, it's possible that insiders might have an indirect interest through a more complex structure. I generally like to see higher levels of ownership.
So What Does This Data Suggest About Hummingbird Resources Insiders?
The fact that there have been no Hummingbird Resources insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Hummingbird Resources stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Hummingbird Resources. Case in point: We've spotted 2 warning signs for Hummingbird Resources you should be aware of.
But note: Hummingbird Resources 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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