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The recent 17% drop in Hummingbird Resources PLC's (LON:HUM) stock could come as a blow to insiders who purchased US$58.8k worth of stock at an average buy price of US$0.028 over the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth US$38.2k, which is not what they expected.
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.
Check out our latest analysis for Hummingbird Resources
Hummingbird Resources Insider Transactions Over The Last Year
Notably, that recent sale by Ryan Mancrief is the biggest insider sale of Hummingbird Resources shares that we've seen in the last year. 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 (UK£0.018). So it is hard to draw any strong conclusion from it.
In the last twelve months insiders purchased 2.10m shares for UK£59k. On the other hand they divested 1.89m shares, for UK£42k. In the last twelve months there was more buying than selling by Hummingbird Resources insiders. They paid about UK£0.028 on average. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Hummingbird Resources is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Have Hummingbird Resources Insiders Traded Recently?
We saw insider selling worth UK£42k in the last three months. But that was only a smidgen more than the UK£42k worth of buying. Ultimately the overall selling isn't enough to tell us much.
Insider Ownership Of Hummingbird Resources
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own UK£439k worth of Hummingbird Resources stock, about 3.0% of the company. But they may have an indirect interest through a corporate structure that we haven't picked up on. I generally like to see higher levels of ownership.