Last week, Heliostar Metals Ltd. (CVE:HSTR) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 10% last week, resulting in a CA$67m increase in the company's market worth, implying a 26% gain on their initial purchase. As a result, their original purchase of US$1.20m worth of stock is now worth US$1.52m.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Heliostar Metals
In the last twelve months, the biggest single purchase by an insider was when Independent Director George Ireland bought CA$513k worth of shares at a price of CA$2.07 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$2.56. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Happily, we note that in the last year insiders paid CA$1.2m for 594.11k shares. But insiders sold 98.73k shares worth CA$223k. In the last twelve months there was more buying than selling by Heliostar Metals 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!
View our latest analysis for Heliostar Metals
Heliostar Metals is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Heliostar Metals Insiders Are Selling The Stock
There was substantially more insider selling, than buying, of Heliostar Metals shares over the last three months. We note insiders cashed in CA$132k worth of shares. On the flip side, insiders spent CA$11k on purchasing shares. Generally this level of net selling might be considered a bit bearish.
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. Insiders own 16% of Heliostar Metals shares, worth about CA$110m. 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 Heliostar Metals Tell Us?
The stark truth for Heliostar Metals is that there has been more insider selling than insider buying in the last three months. In contrast, they appear keener if you look at the last twelve months. On top of that, insiders own a significant portion of the company. So we're happy to look past recent trading. 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 that end, you should learn about the 3 warning signs we've spotted with Heliostar Metals (including 2 which are significant).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.