Those following along with Hargreaves Services Plc (LON:HSP) will no doubt be intrigued by the recent purchase of shares by insider Gordon Frank Banham, who spent a stonking UK£4.0m on stock at an average price of UK£8.20. Not only is that a big swing, but it increased their holding size by 19%, which is definitely great to see.
Hargreaves Services Insider Transactions Over The Last Year
In fact, the recent purchase by Gordon Frank Banham was the biggest purchase of Hargreaves Services shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of UK£8.24. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Hargreaves Services share holders is that insiders were buying at near the current price.
In the last twelve months insiders purchased 499.78k shares for UK£4.1m. On the other hand they divested 725.77k shares, for UK£6.0m. In total, Hargreaves Services insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
View our latest analysis for Hargreaves Services
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insider Ownership Of Hargreaves Services
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Hargreaves Services insiders own 10% of the company, worth about UK£26m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Hargreaves Services Tell Us?
We can't make any useful conclusions about recent trading, since insider buying and selling has been balanced. Recent insider selling makes us a little nervous, in light of the broader picture of Hargreaves Services insider transactions. But it's good to see that insiders own shares in 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. Case in point: We've spotted 3 warning signs for Hargreaves Services you should be aware of, and 1 of them is a bit unpleasant.
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.