The Non-Executive Director of Alpha HPA Limited (ASX:A4N), Cameron Peacock, Just Bought 2.9% More Shares

By
Simply Wall St
Published
June 12, 2021
ASX:A4N
Source: Shutterstock

Whilst it may not be a huge deal, we thought it was good to see that the Alpha HPA Limited (ASX:A4N) Non-Executive Director, Cameron Peacock, recently bought AU$91k worth of stock, for AU$0.61 per share. However, it only increased their shares held by 2.9%, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for Alpha HPA

Alpha HPA Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Grey Egerton-Warburton, for AU$2.5m worth of shares, at about AU$0.54 per share. That means that an insider was selling shares at slightly below the current price (AU$0.56). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 17% of Grey Egerton-Warburton's holding. Grey Egerton-Warburton was the only individual insider to sell shares in the last twelve months.

In the last twelve months insiders purchased 360.00k shares for AU$216k. But insiders sold 6.85m shares worth AU$2.5m. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
ASX:A4N Insider Trading Volume June 12th 2021

I will like Alpha HPA better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Insiders own 22% of Alpha HPA shares, worth about AU$96m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Alpha HPA Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Alpha HPA stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! While we like knowing 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. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Alpha HPA.

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, but not derivative transactions.

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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.
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