Insider Buyers Lose AU$166k As Hydrocarbon Dynamics Sheds AU$928k

The recent price decline of 33% in Hydrocarbon Dynamics Limited's (ASX:HCD) stock may have disappointed insiders who bought AU$201.8k worth of shares at an average price of AU$0.011 in the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth AU$36.2k which is not ideal.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Hydrocarbon Dynamics

Hydrocarbon Dynamics Insider Transactions Over The Last Year

The insider Stirling McGregor made the biggest insider purchase in the last 12 months. That single transaction was for AU$202k worth of shares at a price of AU$0.022 each. That means that an insider was happy to buy shares at above the current price of AU$0.002. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Stirling McGregor was the only individual insider to buy during the last year.

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!

Hydrocarbon Dynamics is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of Hydrocarbon Dynamics

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Hydrocarbon Dynamics insiders own about AU$721k worth of shares. That equates to 39% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Hydrocarbon Dynamics Tell Us?

It doesn't really mean much that no insider has traded Hydrocarbon Dynamics shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Hydrocarbon Dynamics and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Hydrocarbon Dynamics. At Simply Wall St, we've found that Hydrocarbon Dynamics has 3 warning signs (2 are a bit concerning!) that deserve your attention before going any further with your analysis.

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 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.