Trade Alert: Non-Executive Director Of Benjamin Hornigold Gary Miller Has Sold Stock
We'd be surprised if Benjamin Hornigold Limited (ASX:BHD) shareholders haven't noticed that the Non-Executive Director, Gary Miller, recently sold AU$188k worth of stock at AU$0.32 per share. In particular, we note that the sale equated to a 59% reduction in their position size, which doesn't exactly instill confidence.
Benjamin Hornigold Insider Transactions Over The Last Year
In fact, the recent sale by Gary Miller was the biggest sale of Benjamin Hornigold shares made by an insider individual in the last twelve months, according to our records. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is AU$0.19. So it may not tell us anything about how insiders feel about the current share price.
Gary Miller divested 807.13k shares over the last 12 months at an average price of AU$0.31. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
See our latest analysis for Benjamin Hornigold
If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
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. Benjamin Hornigold insiders own about AU$1.2m worth of shares. That equates to 26% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Benjamin Hornigold Insider Transactions Indicate?
An insider sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 4 warning signs for Benjamin Hornigold you should be aware of.
But note: Benjamin Hornigold may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.