Chairman of Select Harvests Travis Dillon Buys 65% More Shares

Even if it's not a huge purchase, we think it was good to see that Travis Dillon, the Chairman of Select Harvests Limited (ASX:SHV) recently shelled out AU$100k to buy stock, at AU$3.98 per share. Even though that isn't a massive buy, it did increase their holding by 65%, which is arguably a good sign.

See our latest analysis for Select Harvests

The Last 12 Months Of Insider Transactions At Select Harvests

Notably, that recent purchase by Travis Dillon is the biggest insider purchase of Select Harvests shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of AU$3.94. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While Select Harvests insiders bought shares during the last year, they didn't sell. 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!

Select Harvests 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 Select Harvests

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Our data suggests Select Harvests insiders own 0.7% of the company, worth about AU$3.7m. We prefer to see high levels of insider ownership.

So What Does This Data Suggest About Select Harvests Insiders?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Select Harvests insiders are reasonably well aligned, and optimistic for the future. 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. Our analysis shows 2 warning signs for Select Harvests (1 doesn't sit too well with us!) and we strongly recommend you look at these before investing.

But note: Select Harvests 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.