Lead Independent Director Frederick Jaques Sold A Bunch Of Shares In Hammond Power Solutions

We'd be surprised if Hammond Power Solutions Inc. (TSE:HPS.A) shareholders haven't noticed that the Lead Independent Director, Frederick Jaques, recently sold CA$178k worth of stock at CA$88.84 per share. That sale was 44% of their holding, so it does make us raise an eyebrow.

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The Last 12 Months Of Insider Transactions At Hammond Power Solutions

Over the last year, we can see that the biggest insider sale was by the Chair of the Board, William Hammond, for CA$66m worth of shares, at about CA$131 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of CA$76.10. So it may not shed much light on insider confidence at current levels.

Over the last year, we can see that insiders have bought 6.17k shares worth CA$661k. But insiders sold 502.00k shares worth CA$66m. In total, Hammond Power Solutions insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Hammond Power Solutions

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Insider Ownership Of Hammond Power Solutions

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. Hammond Power Solutions insiders own about CA$263m worth of shares (which is 28% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Hammond Power Solutions Insider Transactions Indicate?

Our data shows a little more insider selling than buying in the last three months. But the difference is small, and thus, not concerning. It's great to see high levels of insider ownership, but looking back over the last year, we'd need to see more buying to gain confidence from the Hammond Power Solutions insider transactions. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Hammond Power Solutions. While conducting our analysis, we found that Hammond Power Solutions has 1 warning sign and it would be unwise to ignore it.

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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.