Bruce Higgins Is The Chairman of HUB24 Limited (ASX:HUB) And They Just Spent AU$113k On Shares

Even if it's not a huge purchase, we think it was good to see that Bruce Higgins, the Chairman of HUB24 Limited (ASX:HUB) recently shelled out AU$113k to buy stock, at AU$11.27 per share. That might not be a big purchase but it only increased their holding by 1.3%, and could be interpreted as a good sign.

See our latest analysis for HUB24

The Last 12 Months Of Insider Transactions At HUB24

The Non Executive Director, Ian Litster, made the biggest insider sale in the last 12 months. That single transaction was for AU$3.9m worth of shares at a price of AU$14.05 each. That means that an insider was selling shares at around the current price of AU$12.38. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Happily, we note that in the last year insiders paid AU$308k for 120k shares. But they sold 587k for AU$7.1m. Over the last year we saw more insider selling of HUB24 shares, than buying. They sold for an average price of about AU$12.07. It's not too encouraging to see that insiders have sold at below the current price. Since insiders sell for many reasons, we wouldn't put too much weight on it. You can see a visual depiction of insider transactions (by 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!

Does HUB24 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 10% of HUB24 shares, worth about AU$80m. 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 HUB24 Tell Us?

The recent insider purchase is heartening. On the other hand the transaction history, over the last year, isn't so positive. We don't take much heart from transactions by HUB24 insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. Overall they seem reasonably aligned. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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, but not derivative transactions.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.