Yahoo Finance Asim Ghosh Just Bought Shares In Husky Energy Inc. (TSE:HSE)
Potential Husky Energy Inc. (TSE:HSE) shareholders may wish to note that insider Asim Ghosh recently bought CA$300k worth of stock, paying CA$3.00 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 101%.
View our latest analysis for Husky Energy
The Last 12 Months Of Insider Transactions At Husky Energy
In the last twelve months, the biggest single purchase by an insider was when Chief Operating Officer of Asia Pacific Robert Hinkel bought CA$325k worth of shares at a price of CA$9.88 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$2.40). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Happily, we note that in the last year insiders paid CA$908k for 158.01k shares. On the other hand they divested 3017 shares, for CA$29k. In total, Husky Energy insiders bought more than they sold over the last year. They paid about CA$5.75 on average. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that Husky Energy insiders own 29% of the company, worth about CA$710m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Husky Energy Tell Us?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Husky Energy insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! 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 2 warning signs for Husky Energy (1 can't be ignored) you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.
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