Haydale Graphene Industries Gains 14%, Insider Trades Reap Benefit

Haydale Graphene Industries plc (LON:HAYD) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 14% resulting in a UK£3.2m addition to the company’s market value. In other words, the original UK£185.0k purchase is now worth UK£246.7k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At Haydale Graphene Industries

In the last twelve months, the biggest single purchase by an insider was when insider Nicholas Pritchard bought UK£163k worth of shares at a price of UK£0.0045 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£0.006. 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.

Haydale Graphene Industries insiders may have bought shares in the last year, but they didn't sell any. 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!

See our latest analysis for Haydale Graphene Industries

Haydale Graphene Industries is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Haydale Graphene Industries 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. We usually like to see fairly high levels of insider ownership. Haydale Graphene Industries insiders own about UK£7.3m worth of shares. That equates to 28% 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.

So What Does This Data Suggest About Haydale Graphene Industries Insiders?

It doesn't really mean much that no insider has traded Haydale Graphene Industries shares in the last quarter. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Haydale Graphene Industries insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 6 warning signs (3 are significant!) that you ought to be aware of before buying any shares in Haydale Graphene Industries.

Of course Haydale Graphene Industries may not be the best stock to buy. So you may wish to see this free collection of high quality 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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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.