Yahoo Finance Insider Stock Buying Reaches UK£499.9k On Hargreaves Services
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Hargreaves Services Plc (LON:HSP), that sends out a positive message to the company's shareholders.
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
In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Chairman Roger McDowell bought UK£389k worth of shares at a price of UK£5.21 per share. That implies that an insider found the current price of UK£5.74 per share to be enticing. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices. We note that Roger McDowell was both the biggest buyer and the biggest seller.
In the last twelve months insiders purchased 100.08k shares for UK£500k. On the other hand they divested 90.08k shares, for UK£461k. In the last twelve months there was more buying than selling by Hargreaves Services insiders. 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!
Hargreaves Services is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Hargreaves Services Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 10% of Hargreaves Services shares, worth about UK£20m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Hargreaves Services Insider Transactions Indicate?
Insider buying and selling have balanced each other out in the last three months, so we can't deduct anything useful from these recent trades. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Hargreaves Services and their transactions don't cause us concern. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 4 warning signs that you should run your eye over to get a better picture of Hargreaves Services.
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 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.
