HUB24 Independent Non-Executive Director Anthony McDonald Sells 25% Of Holding

Some HUB24 Limited (ASX:HUB) shareholders may be a little concerned to see that the Independent Non-Executive Director, Anthony McDonald, recently sold a substantial AU$895k worth of stock at a price of AU$84.46 per share. That's a big disposal, and it decreased their holding size by 25%, which is notable but not too bad.

Check out our latest analysis for HUB24

The Last 12 Months Of Insider Transactions At HUB24

In the last twelve months, the biggest single sale by an insider was when the MD & Executive Director, Andrew Alcock, sold AU$13m worth of shares at a price of AU$67.00 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of AU$78.00. 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.

All up, insiders sold more shares in HUB24 than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. HUB24 insiders own 4.1% of the company, currently worth about AU$258m 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.

What Might The Insider Transactions At HUB24 Tell Us?

An insider hasn't bought HUB24 stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. 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. 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. Case in point: We've spotted 1 warning sign for HUB24 you should be aware of.

But note: HUB24 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.