It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Hudbay Minerals Inc. (TSE:HBM).
Do Insider Transactions Matter?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
The Last 12 Months Of Insider Transactions At Hudbay Minerals
In the last twelve months, the biggest single purchase by an insider was when Peter Gerald Kukielski bought CA$223k worth of shares at a price of CA$8.90 per share. That implies that an insider found the current (approximate) price enticing. 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 generally consider it a positive if insiders have been buying on market, even if the share price has increased a bit since then.
Over the last year, we can see that insiders have bought 317.70k shares worth CA$2.2m. But insiders sold 34.80k shares worth CA$301k. Overall, Hudbay Minerals insiders were net buyers last year. The average buy price was around CA$7.01. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today’s share price. The chart below shows insider transactions (by individuals) 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 like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insiders at Hudbay Minerals Have Bought Stock Recently
Over the last three months, we’ve seen significantly more insider buying, than insider selling, at Hudbay Minerals. 2 insiders bought US$130k worth of shares. But we did see Thomas Claugus sell shares worth US$57k. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.
Does Hudbay Minerals Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Hudbay Minerals insiders own about CA$18m worth of shares. That equates to 0.7% 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 Hudbay Minerals Tell Us?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Hudbay Minerals insiders are well aligned, and that they may think the share price is too low. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Hudbay Minerals.
Of course Hudbay Minerals 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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