How Much Are Hannans Limited (ASX:HNR) Insiders Spending On Buying Shares?

By
Simply Wall St
Published
July 25, 2021
ASX:HNR
Source: Shutterstock

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Hannans Limited (ASX:HNR).

Do Insider Transactions Matter?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

Check out our latest analysis for Hannans

The Last 12 Months Of Insider Transactions At Hannans

In the last twelve months, the biggest single purchase by an insider was when insider Christopher Reed bought AU$365k worth of shares at a price of AU$0.0044 per share. We do like to see buying, but this purchase was made at well below the current price of AU$0.006. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Christopher Reed purchased 92.95m shares over the year. The average price per share was AU$0.0047. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
ASX:HNR Insider Trading Volume July 25th 2021

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Hannans

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Hannans insiders own 6.0% of the company, worth about AU$847k. But they may have an indirect interest through a corporate structure that we haven't picked up on. We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At Hannans Tell Us?

It doesn't really mean much that no insider has traded Hannans shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Hannans insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Hannans. Every company has risks, and we've spotted 4 warning signs for Hannans you should know about.

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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