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It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Hilton Food Group plc's (LON:HFG) case, it's fantastic news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Hilton Food Group
The Last 12 Months Of Insider Transactions At Hilton Food Group
In the last twelve months, the biggest single purchase by an insider was when Non-Executive Chairman Robert Watson bought UK£203k worth of shares at a price of UK£6.78 per share. So it's clear an insider wanted to buy, at around the current price, which is UK£7.38. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. In this case we're pleased to report that the insider purchases were made at close to current prices.
Hilton Food Group insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Hilton Food Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Hilton Food Group Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Hilton Food Group. Not only was there no selling that we can see, but they collectively bought UK£253k worth of shares. This could be interpreted as suggesting a positive outlook.
Does Hilton Food Group 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Hilton Food Group insiders own 14% of the company, currently worth about UK£93m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Hilton Food Group Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Insiders likely see value in Hilton Food Group shares, given these transactions (along with notable insider ownership of 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. Case in point: We've spotted 4 warning signs for Hilton Food Group you should be aware of, and 2 of them don't sit too well with us.