When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in The Hydration Pharmaceuticals Company Limited's (ASX:HPC) instance, it's good news for shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Hydration Pharmaceuticals

The Last 12 Months Of Insider Transactions At Hydration Pharmaceuticals

The insider Geoffrey O'Brien made the biggest insider purchase in the last 12 months. That single transaction was for AU$500k worth of shares at a price of AU$0.045 each. That means that an insider was happy to buy shares at above the current price of AU$0.009. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Hydration Pharmaceuticals insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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.

Does Hydration Pharmaceuticals Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Hydration Pharmaceuticals insiders own about AU$444k worth of shares. That equates to 16% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Hydration Pharmaceuticals Insider Transactions Indicate?

The fact that there have been no Hydration Pharmaceuticals insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Hydration Pharmaceuticals insiders are doubting the company, and they do own shares. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 6 warning signs for Hydration Pharmaceuticals and we suggest you have a look.