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Investors who take an interest in HMC Capital Limited (ASX:HMC) should definitely note that the Independent Non-Executive Director, Christopher Roberts, recently paid AU$4.70 per share to buy AU$722k worth of the stock. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.
HMC Capital Insider Transactions Over The Last Year
Notably, that recent purchase by Christopher Roberts is the biggest insider purchase of HMC Capital shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of AU$4.63. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Christopher Roberts was the only individual insider to buy during the last year.
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!
Check out our latest analysis for HMC Capital
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. HMC Capital insiders own about AU$88m worth of shares. That equates to 4.6% 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.
What Might The Insider Transactions At HMC Capital Tell Us?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of HMC Capital we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing HMC Capital. While conducting our analysis, we found that HMC Capital has 2 warning signs and it would be unwise to ignore these.