Even if it's not a huge purchase, we think it was good to see that Paul Bennett, the Non-Executive Director of Horizon Gold Limited (ASX:HRN) recently shelled out AU$50k to buy stock, at AU$0.20 per share. While that isn't the hugest buy, it actually boosted their shareholding by 208%, which is good to see.
The Last 12 Months Of Insider Transactions At Horizon Gold
Notably, that recent purchase by Paul Bennett is the biggest insider purchase of Horizon Gold shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of AU$0.21. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Horizon Gold share holders is that insiders were buying at near the current price.
Horizon Gold insiders may have bought shares in the last year, but they didn't sell any. 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!
Horizon Gold 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 Horizon Gold Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, Horizon Gold insiders have about 4.0% of the stock, worth approximately AU$645k. However, it's possible that insiders might have an indirect interest through a more complex structure. We prefer to see high levels of insider ownership.
What Might The Insider Transactions At Horizon Gold Tell Us?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Horizon Gold. For instance, we've identified 6 warning signs for Horizon Gold (4 are concerning) 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.
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