Hamilton Lane Incorporated (NASDAQ:HLNE) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 8.2% resulting in a US$206m addition to the company’s market value. As a result, the stock they originally bought for US$1.0m is now worth US$1.1m.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Hamilton Lane Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Vice Chairman & Head of Asia Business Juan Delgado-Moreira for US$1.0m worth of shares, at about US$69.38 per share. That implies that an insider found the current price of US$72.61 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider bought shares at close to current prices. Juan Delgado-Moreira was the only individual insider to buy shares in the last twelve months.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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.
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. It's great to see that Hamilton Lane insiders own 3.4% of the company, worth about US$132m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Hamilton Lane Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Hamilton Lane. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Hamilton Lane. In terms of investment risks, we've identified 2 warning signs with Hamilton Lane and understanding these should be part of your investment process.
But note: Hamilton Lane 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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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.
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