Whilst it may not be a huge deal, we thought it was good to see that the Horizon Gold Limited (ASX:HRN) Non-Executive Chairman, Peter Sullivan, recently bought AU$55k worth of stock, for AU$0.30 per share. That purchase might not be huge but it did increase their holding by 14%.
Horizon Gold Insider Transactions Over The Last Year
Notably, that recent purchase by Peter Sullivan is the biggest insider purchase of Horizon Gold shares that we've seen in the last year. We do like to see buying, but this purchase was made at well below the current price of AU$0.49. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Horizon Gold insiders may have bought shares in the last year, but they didn't sell any. They paid about AU$0.25 on average. To my mind it is good that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price of AU$0.49. 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!
Horizon Gold is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Horizon Gold Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Horizon Gold insiders own 5.3% of the company, worth about AU$2.3m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
What Might The Insider Transactions At Horizon Gold Tell Us?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Horizon Gold insiders are reasonably well aligned, and optimistic for the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For instance, we've identified 5 warning signs for Horizon Gold (2 shouldn't be ignored) you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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