Whilst it may not be a huge deal, we thought it was good to see that the Harworth Group plc (LON:HWG) Independent Non-Executive Chairman, Alastair Lyons, recently bought UK£50k worth of stock, for UK£0.92 per share. That purchase might not be huge but it did increase their holding by 29%.
See our latest analysis for Harworth Group
The Last 12 Months Of Insider Transactions At Harworth Group
Notably, that recent purchase by Independent Non-Executive Chairman Alastair Lyons was not the only time they bought Harworth Group shares this year. They previously made an even bigger purchase of UK£99k worth of shares at a price of UK£1.05 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£0.90). 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. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
While Harworth Group insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. 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 growing companies that insiders are buying.
Does Harworth Group Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From what we can see in our data, insiders own only about UK£707k worth of Harworth Group shares. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. This level of insider ownership is notably low, and not very encouraging.
What Might The Insider Transactions At Harworth Group Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Harworth Group stock. While we like knowing 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. For example - Harworth Group has 2 warning signs we think you should be aware of.
But note: Harworth Group 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, but not derivative transactions.
This article by Simply Wall St is general in nature. 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.
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