Several Insiders Invested In Hydration Pharmaceuticals Flagging Positive News

Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of The Hydration Pharmaceuticals Company Limited (ASX:HPC), it sends a favourable message to the company's shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Hydration Pharmaceuticals Insider Transactions Over The Last Year

Notably, that recent purchase by Ida Constable is the biggest insider purchase of Hydration Pharmaceuticals shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is AU$0.01. That means they have been optimistic about the company in the past, though they may have changed their mind. 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 Hydration Pharmaceuticals insiders decided to buy shares at close to current prices.

Hydration Pharmaceuticals insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Hydration Pharmaceuticals

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

Hydration Pharmaceuticals Insiders Bought Stock Recently

It's good to see that Hydration Pharmaceuticals insiders have made notable investments in the company's shares. Overall, two insiders shelled out AU$326k for shares in the company -- and none sold. This makes one think the business has some good points.

Insider Ownership Of Hydration Pharmaceuticals

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. From our data, it seems that Hydration Pharmaceuticals insiders own 12% of the company, worth about AU$432k. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Hydration Pharmaceuticals Tell Us?

It's certainly positive to see the recent insider purchases. 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 Hydration Pharmaceuticals insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Hydration Pharmaceuticals. Every company has risks, and we've spotted 5 warning signs for Hydration Pharmaceuticals (of which 4 shouldn't be ignored!) you should know about.

But note: Hydration Pharmaceuticals 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.