The Non-Executive Chairman of the Board of HGL Limited (ASX:HNG), Alexander Beard, Just Bought 28% More Shares

Potential HGL Limited (ASX:HNG) shareholders may wish to note that the Non-Executive Chairman of the Board, Alexander Beard, recently bought AU$150k worth of stock, paying AU$0.13 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 28%.

Check out our latest analysis for HGL

The Last 12 Months Of Insider Transactions At HGL

In the last twelve months, the biggest single purchase by an insider was when Non-Executive Director Peter Miller bought AU$1.0m worth of shares at a price of AU$0.20 per share. That means that an insider was happy to buy shares at around the current price of AU$0.24. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.

Happily, we note that in the last year insiders paid AU$3.1m for 21.48m shares. On the other hand they divested 43.63k shares, for AU$9.9k. Overall, HGL insiders were net buyers during the last year. The average buy price was around AU$0.15. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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

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. I reckon it's a good sign if insiders own a significant number of shares in the company. HGL insiders own 46% of the company, currently worth about AU$12m based on the recent share price. 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 Does This Data Suggest About HGL Insiders?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest HGL insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we've found that HGL has 4 warning signs (2 shouldn't be ignored!) that deserve your attention before going any further with your analysis.

Of course HGL 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, but not derivative transactions.

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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. 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.
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