The Non-Executive Director of HUB24 Limited (ASX:HUB), Paul Rogan, Just Bought 9.6% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the HUB24 Limited (ASX:HUB) Non-Executive Director, Paul Rogan, recently bought AU$68k worth of stock, for AU$19.35 per share. However, it only increased their shares held by 9.6%, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for HUB24

HUB24 Insider Transactions Over The Last Year

The insider, Ian Litster, made the biggest insider sale in the last 12 months. That single transaction was for AU$18m worth of shares at a price of AU$22.00 each. So what is clear is that an insider saw fit to sell at around the current price of AU$20.51. While we don't usually like to see insider selling, it's more concerning if the sales take place 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).

In the last twelve months insiders purchased 23.45k shares for AU$203k. On the other hand they divested 848.00k shares, for AU$18m. Over the last year we saw more insider selling of HUB24 shares, than buying. They sold for an average price of about AU$21.81. We don't gain confidence from insider selling below the recent share price. Since insiders sell for many reasons, we wouldn't put too much weight on it. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does HUB24 Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. HUB24 insiders own 9.7% of the company, currently worth about AU$133m 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.

So What Does This Data Suggest About HUB24 Insiders?

Our data shows a little insider buying, but no selling, in the last three months. Overall the buying isn't worth writing home about. While we gain confidence from high insider ownership of HUB24, we can't say the same about their transactions in the last year, in the absence of further purchases. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 2 warning signs with HUB24 and understanding them should be part of your investment process.

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.

If you decide to trade HUB24, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted

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. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.