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Quite a few insiders have dramatically grown their holdings in Hargreaves Services Plc (LON:HSP) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Hargreaves Services
The Last 12 Months Of Insider Transactions At Hargreaves Services
The Independent Non-Executive Chairman Roger McDowell made the biggest insider purchase in the last 12 months. That single transaction was for UK£389k worth of shares at a price of UK£5.21 each. That implies that an insider found the current price of UK£5.30 per share to be enticing. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Hargreaves Services share holders is that insiders were buying at near the current price. Notably Roger McDowell was also the biggest seller.
Over the last year, we can see that insiders have bought 87.46k shares worth UK£465k. On the other hand they divested 87.48k shares, for UK£465k. Overall, Hargreaves Services insiders were net buyers 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!
Hargreaves Services 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.
Are Hargreaves Services Insiders Buying Or Selling?
We saw Insiders buy shares worth UK£76k in the last three months. However that only slightly eclipses the sales, UK£76k worth of sales. Overall, we don't think these recent trades are particularly informative, one way or the other.
Does Hargreaves Services Boast High Insider Ownership?
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 11% of Hargreaves Services shares, worth about UK£18m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.