With Hancock & Gore Up 12%, Insider Buyers Count Their Returns

Hancock & Gore Ltd (ASX:HNG) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 12%, resulting in a AU$9.0m rise in the company's market capitalisation. Put another way, the original AU$429k acquisition is now worth AU$554k.

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.

See our latest analysis for Hancock & Gore

Hancock & Gore Insider Transactions Over The Last Year

The Executive Chairman of the Board Alexander Beard made the biggest insider purchase in the last 12 months. That single transaction was for AU$98k worth of shares at a price of AU$0.28 each. Even though the purchase was made at a significantly lower price than the recent price (AU$0.39), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Hancock & Gore insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Hancock & Gore is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insiders At Hancock & Gore Have Bought Stock Recently

Over the last quarter, Hancock & Gore insiders have spent a meaningful amount on shares. Overall, two insiders shelled out AU$109k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.

Insider Ownership Of Hancock & Gore

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Hancock & Gore insiders own 43% of the company, worth about AU$37m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Hancock & Gore Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Hancock & Gore. That's what I like to see! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 5 warning signs for Hancock & Gore you should know about.

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 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.