Trade Alert: The Independent Non-Executive Director Of New Hope Corporation Limited (ASX:NHC), Ian Williams, Has Sold Some Shares Recently

We note that the New Hope Corporation Limited (ASX:NHC) Independent Non-Executive Director, Ian Williams, recently sold AU$53k worth of stock for AU$1.40 per share. While that isn't a lot of money, it was a substantial 100% of their holding, so certainly isn't a good sign.

Check out our latest analysis for New Hope

New Hope Insider Transactions Over The Last Year

Notably, that recent sale by Ian Williams is the biggest insider sale of New Hope shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of AU$1.55. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was 100% of Ian Williams's holding.

Happily, we note that in the last year insiders paid AU$96k for 80.00k shares. On the other hand they divested 38.09k shares, for AU$53k. In the last twelve months there was more buying than selling by New Hope insiders. 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!

New Hope is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 1.8% of New Hope shares, worth about AU$24m. 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 Does This Data Suggest About New Hope Insiders?

An insider sold New Hope shares recently, but they didn't buy any. But we take heart from prior transactions. It's good to see insiders are shareholders. So we're not overly bothered by recent selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing New Hope. Case in point: We've spotted 2 warning signs for New Hope you should be aware of.

Of course New Hope 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, but not derivative transactions.

If you decide to trade New Hope, 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.