Whilst it may not be a huge deal, we thought it was good to see that the Hammer Metals Limited (ASX:HMX) Independent Non-Executive Director, Zbigniew Lubieniecki, recently bought AU$100k worth of stock, for AU$0.022 per share. That purchase might not be huge but it did increase their holding by 13%.
The Last 12 Months Of Insider Transactions At Hammer Metals
In fact, the recent purchase by Independent Non-Executive Director Zbigniew Lubieniecki was not their only acquisition of Hammer Metals shares this year. They previously made an even bigger purchase of AU$155k worth of shares at a price of AU$0.025 per share. That implies that an insider found the current price of AU$0.025 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Hammer Metals insiders decided to buy shares at close to current prices.
Hammer Metals insiders may have bought shares in the last year, but they didn't sell any. 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!
Hammer Metals is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Hammer Metals Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 13% of Hammer Metals shares, worth about AU$1.8m, according to our data. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Hammer Metals Insiders?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Hammer Metals insiders are reasonably well aligned, and optimistic for the future. I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow for free.
Of course Hammer Metals 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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