Some Michael Hill International Limited (ASX:MHJ) shareholders may be a little concerned to see that the Non-Executive Director, Emma Hill, recently sold a substantial AU$3.0m worth of stock at a price of AU$0.75 per share. That sale reduced their total holding by 21% which is hardly insignificant, but far from the worst we've seen.
Michael Hill International Insider Transactions Over The Last Year
In fact, the recent sale by Emma Hill was the biggest sale of Michael Hill International shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of AU$0.83. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
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!
I will like Michael Hill International better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does Michael Hill International 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Michael Hill International insiders own about AU$22m worth of shares. That equates to 6.7% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Michael Hill International Tell Us?
An insider sold Michael Hill International shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that Michael Hill International is growing earnings. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. 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 help with this, we've discovered 3 warning signs (1 is a bit concerning!) that you ought to be aware of before buying any shares in Michael Hill International.
But note: Michael Hill International 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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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.
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