Hampton Financial Executive Chairman & CEO Peter Deeb Sells 41% Of Holding

Anyone interested in Hampton Financial Corporation (CVE:HFC) should probably be aware that the Executive Chairman & CEO, Peter Deeb, recently divested CA$350k worth of shares in the company, at an average price of CA$0.53 each. That sale was 41% of their holding, so it does make us raise an eyebrow.

View our latest analysis for Hampton Financial

Hampton Financial Insider Transactions Over The Last Year

In fact, the recent sale by Executive Chairman & CEO Peter Deeb was not their only sale of Hampton Financial shares this year. They previously made an even bigger sale of -CA$368k worth of shares at a price of CA$0.54 per share. So we know that an insider sold shares at around the present share price of CA$0.53. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Over the last year, we can see that insiders have bought 110.00k shares worth CA$44k. But insiders sold 2.07m shares worth CA$1.1m. Peter Deeb divested 2.07m shares over the last 12 months at an average price of CA$0.53. 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!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Hampton Financial insiders own 56% of the company, currently worth about CA$9.2m based on the recent share price. 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 Hampton Financial Insider Transactions Indicate?

An insider sold Hampton Financial shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Hampton Financial. For instance, we've identified 5 warning signs for Hampton Financial (3 don't sit too well with us) you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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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