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Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of HLS Therapeutics Inc. (TSE:HLS), it sends a favourable message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for HLS Therapeutics
HLS Therapeutics Insider Transactions Over The Last Year
The Independent Chairman of the Board John Welborn made the biggest insider purchase in the last 12 months. That single transaction was for CA$166k worth of shares at a price of CA$3.93 each. So it's clear an insider wanted to buy, at around the current price, which is CA$4.19. 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. Happily, the HLS Therapeutics insiders decided to buy shares at close to current prices.
In the last twelve months insiders purchased 51.28k shares for CA$197k. But insiders sold 500.00 shares worth CA$1.7k. In the last twelve months there was more buying than selling by HLS Therapeutics insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
HLS Therapeutics is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
HLS Therapeutics Insiders Bought Stock Recently
It's good to see that HLS Therapeutics insiders have made notable investments in the company's shares. Overall, two insiders shelled out CA$175k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Our information indicates that HLS Therapeutics insiders own about CA$894k worth of shares. We might be missing something but that seems like very low insider ownership.
So What Do The HLS Therapeutics Insider Transactions Indicate?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that HLS Therapeutics insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing HLS Therapeutics. While conducting our analysis, we found that HLS Therapeutics has 2 warning signs and it would be unwise to ignore these.