Insiders Re-Evaluate Their AU$1.0m Stock Purchase As Harvest Technology Group Falls To AU$20m

The recent price decline of 17% in Harvest Technology Group Limited's (ASX:HTG) stock may have disappointed insiders who bought AU$1.0m worth of shares at an average price of AU$0.15 in the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth AU$202k, which is not what they expected.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Harvest Technology Group

Harvest Technology Group Insider Transactions Over The Last Year

The Founder & Group CEO Paul Guilfoyle made the biggest insider purchase in the last 12 months. That single transaction was for AU$500k worth of shares at a price of AU$0.15 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.029). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months insiders purchased 6.97m shares for AU$1.0m. On the other hand they divested 9.12m shares, for AU$581k. In total, Harvest Technology Group insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Insider Ownership Of Harvest Technology Group

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Harvest Technology Group insiders own about AU$4.5m worth of shares. That equates to 22% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Harvest Technology Group Tell Us?

The fact that there have been no Harvest Technology Group insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Harvest Technology Group and their transactions don't cause us concern. 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. At Simply Wall St, we've found that Harvest Technology Group has 7 warning signs (3 can't be ignored!) that deserve your attention before going any further with your analysis.

But note: Harvest Technology Group 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 of direct interests only, but not derivative transactions or indirect interests.

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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.