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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 Hill & Smith PLC (LON:HILS), it sends a favourable message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Hill & Smith
The Last 12 Months Of Insider Transactions At Hill & Smith
Over the last year, we can see that the biggest insider purchase was by CEO & Member of Executive Board Rutger Helbing for UK£204k worth of shares, at about UK£20.39 per share. That means that an insider was happy to buy shares at above the current price of UK£19.06. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months Hill & Smith insiders were buying shares, but not selling. 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!
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
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own UK£2.6m worth of Hill & Smith stock, about 0.2% of the company. We prefer to see high levels of insider ownership.
So What Do The Hill & Smith Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Hill & Smith 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. You'd be interested to know, that we found 1 warning sign for Hill & Smith and we suggest you have a look.