It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Horizon North Logistics Inc. (TSE:HNL).
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
Horizon North Logistics Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by Independent Director Russell Newmark for CA$160k worth of shares, at about CA$3.20 per share. That is hardly a positive sign, even though it took place above the latest price (CA$1.56). So it is hard to draw any strong conclusion from it.
In total, Horizon North Logistics insiders sold more than they bought over the last year. The sellers received a price of around CA$1.96, on average. We don’t gain much confidence from insider selling near the recent share price of CA$1.56. Since insiders sell for many reasons, we wouldn’t put too much weight on it. The chart below shows insider transactions over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Horizon North Logistics Insiders Are Selling The Stock
Over the last three months, we’ve seen significant insider selling at Horizon North Logistics. In total, insiders sold CA$308k worth of shares in that time, and we didn’t record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Does Horizon North Logistics 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’s great to see that Horizon North Logistics insiders own 1.9% of the company, worth about CA$5.1m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Horizon North Logistics Insider Transactions Indicate?
Insiders haven’t bought Horizon North Logistics stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn’t make us feel much more positive. Insiders own relatively few shares in the company, and when you consider the sales, we’re not particularly excited about the stock. We’d certainly think twice before buying! 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.
Of course Horizon North Logistics may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.