Insiders who bought HITIQ Limited (ASX:HIQ) stock lover the last 12 months are probably not as affected by last week’s 15% loss. Even after accounting for the recent loss, the AU$240.2k worth of stock purchased by them is now worth AU$264.2k or in other words, their investment continues to give good returns.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The insider, Otto Buttula, made the biggest insider sale in the last 12 months. That single transaction was for AU$156k worth of shares at a price of AU$0.046 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of AU$0.022. So it is hard to draw any strong conclusion from it. Otto Buttula was the only individual insider to sell shares in the last twelve months. Notably Otto Buttula was also the biggest buyer, having purchased AU$240k worth of shares.
Over the last year, we can see that insiders have bought 12.01m shares worth AU$240k. But insiders sold 5.26m shares worth AU$166k. In total, HITIQ insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
View our latest analysis for HITIQ
HITIQ is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insiders bought just AU$3.2k worth of shares in that time. That's not much at all. Looking at the net result, we don't think these recent trades shed much light on how insiders, as a group, are feeling about the company's prospects.
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that HITIQ insiders own 20% of the company, worth about AU$2.2m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
Our data shows a little insider buying, but no selling, in the last three months. The net investment is not enough to encourage us much. However, our analysis of transactions over the last year is heartening. Insiders own shares in HITIQ and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing HITIQ. Case in point: We've spotted 6 warning signs for HITIQ you should be aware of, and 5 of these shouldn't be ignored.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.