Murray Boyte Is The Non Executive Director of Hillgrove Resources Limited (ASX:HGO) And Just Spent AU$100k On Shares

Whilst it may not be a huge deal, we thought it was good to see that the Hillgrove Resources Limited (ASX:HGO) Non Executive Director, Murray Boyte, recently bought AU$100k worth of stock, for AU$0.031 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

See our latest analysis for Hillgrove Resources

The Last 12 Months Of Insider Transactions At Hillgrove Resources

In fact, the recent purchase by Murray Boyte was the biggest purchase of Hillgrove Resources shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of AU$0.036 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. 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. The good news for Hillgrove Resources share holders is that insiders were buying at near the current price.

In the last twelve months Hillgrove Resources insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Does Hillgrove Resources Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Hillgrove Resources insiders own about AU$6.8m worth of shares. That equates to 21% 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.

So What Do The Hillgrove Resources Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Hillgrove Resources insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 3 warning signs for Hillgrove Resources (1 is potentially serious!) that we believe deserve your full attention.

But note: Hillgrove Resources 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, but not derivative transactions.

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