Have Hancock & Gore Insiders Been Selling Stock?

Some Hancock & Gore Ltd (ASX:HNG) shareholders may be a little concerned to see that insider Peter Miller recently sold a substantial AU$7.5m worth of stock at a price of AU$0.34 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 96% of their entire holding.

Check out our latest analysis for Hancock & Gore

The Last 12 Months Of Insider Transactions At Hancock & Gore

In fact, the recent sale by Peter Miller was the biggest sale of Hancock & Gore shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of AU$0.34. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Over the last year, we can see that insiders have bought 596.02k shares worth AU$198k. On the other hand they divested 22.07m shares, for AU$7.5m. You can see a visual depiction of insider transactions (by companies and 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!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Does Hancock & Gore Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Hancock & Gore insiders own 48% of the company, worth about AU$49m. 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 Hancock & Gore Tell Us?

An insider sold Hancock & Gore shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. But since Hancock & Gore is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Hancock & Gore. In terms of investment risks, we've identified 6 warning signs with Hancock & Gore and understanding these should be part of your investment process.

Of course Hancock & Gore may not be the best stock to buy. So you may wish to see this free collection of high quality 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 of direct interests only, but not derivative transactions or indirect interests.

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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.