Had insiders known Helios Underwriting Plc (LON:HUW) would hit UK£127m they might have invested more last year

By
Simply Wall St
Published
April 20, 2022
AIM:HUW
Source: Shutterstock

Insiders who bought Helios Underwriting Plc (LON:HUW) stock in the last 12 months were richly rewarded last week. The company's market value increased by UK£12m as a result of the stock's 10% gain over the same period. In other words, the original UK£113k purchase is now worth UK£142k.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Helios Underwriting

Helios Underwriting Insider Transactions Over The Last Year

The Chief Executive & Director Nigel Hanbury made the biggest insider purchase in the last 12 months. That single transaction was for UK£97k worth of shares at a price of UK£1.45 each. We do like to see buying, but this purchase was made at well below the current price of UK£1.85. 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.

Happily, we note that in the last year insiders paid UK£113k for 76.70k shares. But they sold 4.30k shares for UK£6.0k. In the last twelve months there was more buying than selling by Helios Underwriting insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
AIM:HUW Insider Trading Volume April 20th 2022

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Helios Underwriting Insiders Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at Helios Underwriting. Non-Executive Director Thomas Libassi shelled out UK£8.2k for shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Does Helios Underwriting Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 24% of Helios Underwriting shares, worth about UK£31m. 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 Helios Underwriting Tell Us?

We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Helios Underwriting insiders are doubting the company, and they do own shares. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 1 warning sign for Helios Underwriting that deserve your attention before buying any shares.

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, but not derivative transactions.

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