We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Haydale Graphene Industries plc (LON:HAYD), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
Haydale Graphene Industries Insider Transactions Over The Last Year
The President, Tom Quantrille, made the biggest insider sale in the last 12 months. That single transaction was for UK£83k worth of shares at a price of UK£0.27 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (UK£0.017). So it may not shed much light on insider confidence at current levels.
Over the last year we saw more insider selling of Haydale Graphene Industries shares, than buying. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Haydale Graphene Industries better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Have Haydale Graphene Industries Insiders Traded Recently?
The last three months saw some Haydale Graphene Industries insider selling. insider Raymond Gibbs only netted UK£7.2k selling shares, in that period. Neither the lack of buying nor the presence of selling is heartening. But the amount sold isn't enough for us to put any weight on it.
Does Haydale Graphene Industries Boast High 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. Insiders own 18% of Haydale Graphene Industries shares, worth about UK£1.0m. 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 Does This Data Suggest About Haydale Graphene Industries Insiders?
While there has not been any insider buying in the last three months, there has been selling. But given the selling was modest, we're not worried. We're a little cautious about the insider selling at Haydale Graphene Industries. But it's good to see that insiders own shares in the company. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Haydale Graphene Industries.
Of course Haydale Graphene Industries may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.
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If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.