In This Article:
Whilst it may not be a huge deal, we thought it was good to see that the Benjamin Hornigold Limited (ASX:BHD) Non-Executive Director, Sulieman Ravell, recently bought AU$109k worth of stock, for AU$0.22 per share. That purchase might not be huge but it did increase their holding by 26%.
View our latest analysis for Benjamin Hornigold
The Last 12 Months Of Insider Transactions At Benjamin Hornigold
In fact, the recent purchase by Sulieman Ravell was the biggest purchase of Benjamin Hornigold shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of AU$0.22. 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. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Sulieman Ravell was the only individual insider to buy during the last year.
Sulieman Ravell purchased 1.23m shares over the year. The average price per share was AU$0.23. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Benjamin Hornigold insiders own 28% of the company, worth about AU$1.5m. 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 Benjamin Hornigold Insiders?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Benjamin Hornigold we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Benjamin Hornigold. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Benjamin Hornigold.