The Independent Chairman of Home Capital Group Inc. (TSE:HCG), Alan Hibben, Just Bought 14% More Shares

By
Simply Wall St
Published
February 24, 2022
TSX:HCG
Source: Shutterstock

Whilst it may not be a huge deal, we thought it was good to see that the Home Capital Group Inc. (TSE:HCG) Independent Chairman, Alan Hibben, recently bought CA$75k worth of stock, for CA$37.55 per share. That purchase might not be huge but it did increase their holding by 14%.

View our latest analysis for Home Capital Group

The Last 12 Months Of Insider Transactions At Home Capital Group

In fact, the recent purchase by Alan Hibben was the biggest purchase of Home Capital Group shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$37.51). 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. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Over the last year, we can see that insiders have bought 5.00k shares worth CA$188k. On the other hand they divested 2.46k shares, for CA$91k. In total, Home Capital Group insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
TSX:HCG Insider Trading Volume February 24th 2022

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.

Does Home Capital Group 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. From our data, it seems that Home Capital Group insiders own 0.7% of the company, worth about CA$11m. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Home Capital Group Insiders?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Home Capital Group we think they are probably pretty confident of a bright future. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

But note: Home Capital 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, but not derivative transactions.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.