Insider Buying: Christopher Reed Just Spent AU$365k On Hannans Limited (ASX:HNR) Shares

Investors who take an interest in Hannans Limited (ASX:HNR) should definitely note that insider Christopher Reed recently paid AU$0.0044 per share to buy AU$365k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 12%.

See our latest analysis for Hannans

Hannans Insider Transactions Over The Last Year

Notably, that recent purchase by Christopher Reed is the biggest insider purchase of Hannans shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of AU$0.005. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Hannans share holders is that an insider was buying at near the current price. Christopher Reed was the only individual insider to buy shares in the last twelve months.

Christopher Reed bought a total of 92.95m shares over the year at an average price of AU$0.0047. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Does Hannans Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Hannans insiders own 35% of the company, worth about AU$4.1m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Hannans Tell Us?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Hannans shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 5 warning signs for Hannans (3 are a bit concerning) you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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