H2G Insider Ups Holding By 29% During Year
Insiders were net buyers of H2G Limited's (ASX:H2G ) stock during the past year. That is, insiders bought more stock than they sold.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At H2G
In the last twelve months, the biggest single purchase by an insider was when insider Anthony Barton bought AU$290k worth of shares at a price of AU$0.011 per share. That means that even when the share price was higher than AU$0.009 (the recent price), an insider wanted to purchase shares. 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. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Anthony Barton was the only individual insider to buy during the last year.
Anthony Barton bought 56.27m shares over the last 12 months at an average price of AU$0.0096. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for H2G
H2G is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does H2G Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. H2G insiders own about AU$2.8m worth of shares. That equates to 40% of the company. 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 H2G Insider Transactions Indicate?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Insiders likely see value in H2G shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing H2G. For instance, we've identified 5 warning signs for H2G (4 are significant) you should be aware of.
But note: H2G 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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