We note that the Hammond Power Solutions Inc. (TSE:HPS.A) Independent Director, Donald MacAdam, recently sold CA$80k worth of stock for CA$8.00 per share. It wasn't a huge sale, but it did reduce their holding by 44%. This does not instill confidence.
The Last 12 Months Of Insider Transactions At Hammond Power Solutions
Notably, that recent sale by Donald MacAdam is the biggest insider sale of Hammond Power Solutions shares that we've seen in the last year. That means that an insider was selling shares at around the current price of CA$8.00. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
We note that in the last year insiders divested 37000 shares for a total of CA$300k. Hammond Power Solutions insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by 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!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does Hammond Power Solutions Boast High 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. We usually like to see fairly high levels of insider ownership. Hammond Power Solutions insiders own about CA$32m worth of shares. That equates to 34% 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 Does This Data Suggest About Hammond Power Solutions Insiders?
Insiders haven't bought Hammond Power Solutions stock in the last three months, but there was some selling. And even if we look to the last year, we didn't see any purchases. On the plus side, Hammond Power Solutions makes money, and is growing profits. While insiders do own shares, they don't own a heap, and they have been selling. We'd think twice before buying! To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.
But note: Hammond Power Solutions 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.
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