Bullish Harbour Energy plc (LON:HBR) insiders were rewarded last week as their US$530k investment inflated to US$638k

By
Simply Wall St
Published
November 23, 2021
LSE:HBR
Source: Shutterstock

Last week, Harbour Energy plc (LON:HBR) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 7.5% last week, resulting in a UK£267m increase in the company's market worth. In other words, the original US$530k purchase is now worth US$638k.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Harbour Energy

The Last 12 Months Of Insider Transactions At Harbour Energy

In the last twelve months, the biggest single purchase by an insider was when President & CEO of Europe and Director Phil Kirk bought UK£328k worth of shares at a price of UK£3.28 per share. Even though the purchase was made at a significantly lower price than the recent price (UK£4.14), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

While Harbour Energy insiders bought shares during the last year, they didn't sell. 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!

insider-trading-volume
LSE:HBR Insider Trading Volume November 24th 2021

Harbour Energy is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Harbour Energy Insiders Bought Stock Recently

It's good to see that Harbour Energy insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought UK£170k worth of shares. This is a positive in our book as it implies some confidence.

Does Harbour Energy Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Harbour Energy insiders own 1.7% of the company, worth about UK£64m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Harbour Energy Insiders?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Harbour Energy shares, given these transactions (along with notable insider ownership of the company). Of course, the future is what matters most. So if you are interested in Harbour Energy, you should check out this free report on analyst forecasts for the company.

But note: Harbour Energy may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.


Simply Wall St character - Warren

Simply Wall St

Simply Wall St is focused on providing unbiased, high-quality research coverage on every listed company in the world. Our research team consists of data scientists and multiple equity analysts with over two decades worth of financial markets experience between them.