One Hargreaves Lansdown plc (LON:HL.) insider reduced their stake by 22% in the previous year

By
Simply Wall St
Published
September 07, 2021
LSE:HL.
Source: Shutterstock

Looking at Hargreaves Lansdown plc's (LON:HL. ) insider transactions over the last year, we can see that insiders were net sellers. That is, there were more number of shares sold by insiders than there were purchased.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Hargreaves Lansdown

The Last 12 Months Of Insider Transactions At Hargreaves Lansdown

In the last twelve months, the biggest single sale by an insider was when the Chief Investment Officer, Lee Gardhouse, sold UK£1.9m worth of shares at a price of UK£15.57 per share. So what is clear is that an insider saw fit to sell at around the current price of UK£14.85. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. Lee Gardhouse was the only individual insider to sell shares in the last twelve months.

The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
LSE:HL. Insider Trading Volume September 8th 2021

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Insider Ownership of Hargreaves Lansdown

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Hargreaves Lansdown insiders own 26% of the company, currently worth about UK£1.8b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Hargreaves Lansdown Tell Us?

The fact that there have been no Hargreaves Lansdown insider transactions recently certainly doesn't bother us. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Hargreaves Lansdown insider transactions don't fill us with confidence. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Hargreaves Lansdown. Our analysis shows 2 warning signs for Hargreaves Lansdown (1 is a bit concerning!) and we strongly recommend you look at them before investing.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

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