Insiders who bought A$6.8 million of Harvest Technology Group Ltd (ASX:HTG) Over the past year, stocks have recouped some of their losses after the price gained 13% last week. However, the purchase is proving to be a costly gamble, as insider losses have totaled A$3.4 million since the time of purchase.
While we would never suggest that investors base their decisions solely on what a company’s directors have done, we think it makes perfect sense to keep tabs on what insiders are doing.
Check out our latest analysis for Harvest Technology Group
The last 12 months of insider trading at Harvest Technology Group
Insider Carl Charalambous made the biggest insider buy in the last 12 months. This single transaction involved 2.6 million Australian dollars of shares at a price of 0.38 Australian dollars each. It is therefore clear that an insider wanted to buy, even at a price higher than the current share price (i.e. AU$0.17). Although their perspective has changed since the purchase, it at least suggests that they have confidence in the future of the company. For us, it is very important to consider the price that insiders pay for the shares. It is encouraging to see an insider paid above the current stock price, as it suggests that they have perceived value even at higher levels. Carl Charalambous was the only individual insider to buy in the past year. Notably Carl Charalambous was also the biggest seller.
Carl Charalambous purchased a total of 19.91 million shares during the year at an average price of AU$0.34. You can see a visual representation of insider trading (by companies and individuals) over the past 12 months, below. By clicking on the graph below, you will be able to see the precise detail of each insider trade!
Harvest Technology Group isn’t the only stock insiders are buying. So take a look at this free list of growing companies with insider buying.
Harvest Technology Group Insider Ownership
For an ordinary shareholder, it is worth checking how many shares are held by company insiders. I think it’s a good sign if insiders have a significant number of shares in the company. Insiders own 25% of the shares of Harvest Technology Group, worth approximately A$25 million. This level of insider ownership is good, but just short of being particularly noteworthy. This certainly suggests a reasonable degree of alignment.
So what do Harvest Technology Group’s insider trading indicate?
There have been no insider trades in the last three months – that’s not saying much. On a more positive note, last year’s transactions are encouraging. Overall, we see nothing to suggest that insiders at Harvest Technology Group doubt the company and hold stock. While we like to know what’s going on with insider ownership and trading, we also make sure to consider the risks a stock faces before making any investment decisions. Example: we have identified 3 warning signs for Harvest Technology Group you should be aware.
Sure, you might find a fantastic investment by looking elsewhere. So take a look at this free list of interesting companies.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.