One Gold Hydrogen Insider Raised Stake By 26% In Previous Year

From what we can see, insiders were net buyers in Gold Hydrogen Limited's (ASX:GHY ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Gold Hydrogen

The Last 12 Months Of Insider Transactions At Gold Hydrogen

Over the last year, we can see that the biggest insider purchase was by insider Gregory Baynton for AU$1.6m worth of shares, at about AU$0.77 per share. So it's clear an insider wanted to buy, at around the current price, which is AU$0.82. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Gold Hydrogen insider decided to buy shares at close to current prices. Gregory Baynton was the only individual insider to buy shares in the last twelve months.

Gregory Baynton bought 2.11m shares over the last 12 months at an average price of AU$0.77. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Does Gold Hydrogen 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. We usually like to see fairly high levels of insider ownership. It appears that Gold Hydrogen insiders own 32% of the company, worth about AU$43m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Gold Hydrogen Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Gold Hydrogen shares in the last quarter. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Gold Hydrogen insiders are doubting the company, and they do own shares. 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. Every company has risks, and we've spotted 6 warning signs for Gold Hydrogen (of which 1 is a bit concerning!) you should know about.

Of course Gold Hydrogen 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.