Insiders Of Greenhy2 Make A Tidy Sum Selling At AU$0.006

While it’s been a great week for Greenhy2 Limited (ASX:H2G) shareholders after stock gained 10.0%, company insiders might have missed out on those gains after selling stock earlier this year. The return on their investment would have been much higher had they held on to their stock.

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.

We've discovered 5 warning signs about Greenhy2. View them for free.

Greenhy2 Insider Transactions Over The Last Year

The insider, Guido Belgiorno-Nettis, made the biggest insider sale in the last 12 months. That single transaction was for AU$168k worth of shares at a price of AU$0.006 each. That means that even when the share price was below the current price of AU$0.011, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 34% of Guido Belgiorno-Nettis's stake. The only individual insider seller over the last year was Guido Belgiorno-Nettis.

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!

View our latest analysis for Greenhy2

I will like Greenhy2 better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insiders At Greenhy2 Have Sold Stock Recently

Over the last three months, we've seen notably more insider selling, than insider buying, at Greenhy2. We note insider Guido Belgiorno-Nettis cashed in AU$168k worth of shares. On the flip side, insider Anthony Barton spent AU$6.1k on purchasing shares (as mentioned above) . The share price has moved a bit recently, but it's hard to argue that the selling is a positive.

Insider Ownership Of Greenhy2

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that Greenhy2 insiders own 41% of the company, worth about AU$2.7m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Greenhy2 Tell Us?

Unfortunately, there has been more insider selling of Greenhy2 stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Greenhy2 has 5 warning signs (3 are a bit concerning!) that deserve your attention before going any further with your analysis.

But note: Greenhy2 may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.