Yahoo Finance Have Insiders Been Buying Hudbay Minerals Inc. (TSE:HBM) Shares?
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It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Hudbay Minerals Inc. (TSE:HBM).
Do Insider Transactions Matter?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
See our latest analysis for Hudbay Minerals
Hudbay Minerals Insider Transactions Over The Last Year
Director Peter Gerald Kukielski made the biggest insider purchase in the last 12 months. That single transaction was for CA$223k worth of shares at a price of CA$8.90 each. That means that an insider was happy to buy shares at above the current price of CA$6.43. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Happily, we note that in the last year insiders paid CA$2.4m for 343k shares. On the other hand they divested 42800 shares, for CA$369k. Overall, Hudbay Minerals insiders were net buyers last year. The average buy price was around CA$7.02. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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.
Insiders at Hudbay Minerals Have Bought Stock Recently
We saw some Hudbay Minerals insider buying shares in the last three months. In that period insiders spent US$280k on shares. On the other hand, Thomas Claugus sold US$263k worth of shares. While it's good to see the insider buying, the net amount bought isn't enough for us to gain much confidence from it.
Insider Ownership of Hudbay Minerals
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that Hudbay Minerals insiders own 0.7% of the company, worth about CA$12m. Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Hudbay Minerals Insider Transactions Indicate?
Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Hudbay Minerals insiders are doubting the company, and they do own shares. Of course, the future is what matters most. So if you are interested in Hudbay Minerals, you should check out this free report on analyst forecasts for the company.
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.
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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. Thank you for reading.
