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Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Helios Towers plc (LON:HTWS), that sends out a positive message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Helios Towers
The Last 12 Months Of Insider Transactions At Helios Towers
Over the last year, we can see that the biggest insider purchase was by insider Richard Byrne for UK£204k worth of shares, at about UK£0.94 per share. That means that even when the share price was higher than UK£0.92 (the recent price), an insider wanted to purchase shares. 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 if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Happily, we note that in the last year insiders paid UK£293k for 320.58k shares. But insiders sold 18.13k shares worth UK£17k. In the last twelve months there was more buying than selling by Helios Towers insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Helios Towers is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Helios Towers Insiders Bought Stock Recently
Over the last quarter, Helios Towers insiders have spent a meaningful amount on shares. insider Richard Byrne spent UK£204k on stock, and there wasn't any selling. This is a positive in our book as it implies some confidence.
Does Helios Towers Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Helios Towers insiders own 0.6% of the company, worth about UK£5.3m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At Helios Towers Tell Us?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Helios Towers insiders are expecting a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for Helios Towers that deserve your attention before buying any shares.