Insiders who acquired AU$360k worth of Harmoney Corp Limited's (ASX:HMY) stock at an average price of AU$0.69 in the past 12 months may be dismayed by the recent 15% price decline. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only AU$201k.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Harmoney
Harmoney Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when CEO & Director David Stevens bought AU$208k worth of shares at a price of AU$0.69 per share. That means that an insider was happy to buy shares at above the current price of AU$0.39. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months Harmoney insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Harmoney is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider 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. Harmoney insiders own about AU$15m worth of shares. That equates to 36% 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 Harmoney Tell Us?
It doesn't really mean much that no insider has traded Harmoney shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Harmoney insiders are doubting the company, and they do own shares. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Harmoney.