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Insiders who bought AU$122.7k worth of Helloworld Travel Limited's (ASX:HLO) stock at an average buy price of AU$2.36 over the last year may be disappointed by the recent 14% decrease in the stock. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth AU$101.9k which is not ideal.
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.
See our latest analysis for Helloworld Travel
The Last 12 Months Of Insider Transactions At Helloworld Travel
In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Director Leanne Coddington bought AU$104k worth of shares at a price of AU$2.32 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$1.96). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Helloworld Travel insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Helloworld Travel 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.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 15% of Helloworld Travel shares, worth about AU$46m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Helloworld Travel Insiders?
The fact that there have been no Helloworld Travel insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Helloworld Travel and their transactions don't cause us concern. 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. While conducting our analysis, we found that Helloworld Travel has 1 warning sign and it would be unwise to ignore it.