Have Insiders Sold Harmoney Shares Recently?

Some Harmoney Corp Limited (ASX:HMY) shareholders may be a little concerned to see that the Founder, Neil Roberts, recently sold a substantial AU$1.8m worth of stock at a price of AU$0.51 per share. That sale reduced their total holding by 19% which is hardly insignificant, but far from the worst we've seen.

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The Last 12 Months Of Insider Transactions At Harmoney

Notably, that recent sale by Neil Roberts is the biggest insider sale of Harmoney shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (AU$0.53). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 19% of Neil Roberts's stake.

Over the last year, we can see that insiders have bought 90.00k shares worth AU$35k. On the other hand they divested 3.60m shares, for AU$1.8m. 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!

View our latest analysis for Harmoney

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Does Harmoney Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Harmoney insiders own about AU$20m worth of shares. That equates to 38% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Harmoney Tell Us?

An insider sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! While it's good to be aware of 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. While conducting our analysis, we found that Harmoney has 2 warning signs and it would be unwise to ignore these.

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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.