Despite the fact that Benjamin Hornigold Limited's (ASX:BHD) value has dropped 37% in the last week insiders who sold AU$254k worth of stock in the past 12 months have had less success. Insiders would probably have been better off holding on to their shares given that the average selling price of AU$0.31 is still lower than the current share price.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Benjamin Hornigold Insider Transactions Over The Last Year
In fact, the recent sale by Gary Miller was the biggest sale of Benjamin Hornigold shares made by an insider individual in the last twelve months, according to our records. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (AU$0.19). So it is hard to draw any strong conclusion from it.
Gary Miller ditched 807.13k shares over the year. The average price per share was AU$0.31. 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 Benjamin Hornigold
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).
Insiders At Benjamin Hornigold Have Sold Stock Recently
The last three months saw significant insider selling at Benjamin Hornigold. In total, Non-Executive Director Gary Miller sold AU$254k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 26% of Benjamin Hornigold shares, worth about AU$1.2m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Benjamin Hornigold Tell Us?
An insider hasn't bought Benjamin Hornigold stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 4 warning signs for Benjamin Hornigold and we suggest you have a look.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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