Don't Ignore The Insider Selling In HUB24

Some HUB24 Limited (ASX:HUB) shareholders may be a little concerned to see that the MD & Executive Director, Andrew Alcock, recently sold a substantial AU$13m worth of stock at a price of AU$67.00 per share. That sale reduced their total holding by 18% which is hardly insignificant, but far from the worst we've seen.

See our latest analysis for HUB24

The Last 12 Months Of Insider Transactions At HUB24

Notably, that recent sale by Andrew Alcock is the biggest insider sale of HUB24 shares that we've seen in the last year. That means that even when the share price was below the current price of AU$71.85, 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. We note that the biggest single sale was only 18% of Andrew Alcock's holding.

In total, HUB24 insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and 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!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Does HUB24 Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that HUB24 insiders own 3.8% of the company, worth about AU$222m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At HUB24 Tell Us?

The insider sales have outweighed the insider buying, at HUB24, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But since HUB24 is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing HUB24. Case in point: We've spotted 1 warning sign for HUB24 you should be aware of.

Of course HUB24 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 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.