Yahoo Finance Insider Buyers At Harvest Technology Group Likely Disappointed With 17% Slide
Insiders who acquired AU$1.0m worth of Harvest Technology Group Limited's (ASX:HTG) stock at an average price of AU$0.15 in the past 12 months may be dismayed by the recent 17% price decline. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth AU$244k which is not ideal.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Harvest Technology Group
The Last 12 Months Of Insider Transactions At Harvest Technology Group
In the last twelve months, the biggest single purchase by an insider was when Founder Paul Guilfoyle bought AU$500k worth of shares at a price of AU$0.15 per share. That means that even when the share price was higher than AU$0.035 (the recent price), an insider wanted to purchase shares. 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. To us, it's very important to consider the price insiders pay for 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. Notably Paul Guilfoyle was also the biggest seller.
Over the last year, we can see that insiders have bought 6.97m shares worth AU$1.0m. On the other hand they divested 1.38m shares, for AU$82k. Overall, Harvest Technology Group insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Harvest Technology Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of Harvest Technology Group
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 25% of Harvest Technology Group shares, worth about AU$5.4m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Harvest Technology Group Insiders?
It doesn't really mean much that no insider has traded Harvest Technology Group shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Harvest Technology Group and their transactions don't cause us concern. 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. Be aware that Harvest Technology Group is showing 6 warning signs in our investment analysis, and 1 of those doesn't sit too well with us...
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.
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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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