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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Halfords Group plc's (LON:HFD) 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, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Halfords Group
The Last 12 Months Of Insider Transactions At Halfords Group
The Independent Non-Executive Chairman Keith Williams made the biggest insider purchase in the last 12 months. That single transaction was for UK£64k worth of shares at a price of UK£3.20 each. That means that an insider was happy to buy shares at above the current price of UK£1.67. It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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 Halfords Group insiders bought shares during the last year, they didn't sell. 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!
Halfords Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Halfords Group Boast High 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. Our data isn't picking up on much insider ownership at Halfords Group, though insiders do hold about UK£556k worth of shares. This level of insider ownership is notably low, and not very encouraging.
What Might The Insider Transactions At Halfords Group Tell Us?
The fact that there have been no Halfords Group insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Halfords Group insiders are doubting the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 4 warning signs for Halfords Group (1 makes us a bit uncomfortable!) and we strongly recommend you look at them before investing.