Finance Director & Executive Director of Hummingbird Resources Thomas Hill Buys 31% More Shares

Those following along with Hummingbird Resources PLC (LON:HUM) will no doubt be intrigued by the recent purchase of shares by Thomas Hill, Finance Director & Executive Director of the company, who spent a stonking UK£1.7m on stock at an average price of UK£11.25. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 31%.

View our latest analysis for Hummingbird Resources

Hummingbird Resources Insider Transactions Over The Last Year

Notably, that recent purchase by Thomas Hill is the biggest insider purchase of Hummingbird Resources shares that we've seen in the last year. That means that even when the share price was higher than UK£0.097 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Thomas Hill.

Thomas Hill purchased 233.34k shares over the year. The average price per share was UK£7.26. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Hummingbird Resources is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Hummingbird Resources Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests Hummingbird Resources insiders own 1.1% of the company, worth about UK£880k. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We consider this fairly low insider ownership.

What Might The Insider Transactions At Hummingbird Resources Tell Us?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Hummingbird Resources stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Hummingbird Resources. Case in point: We've spotted 3 warning signs for Hummingbird Resources you should be aware of, and 2 of them are potentially serious.

But note: Hummingbird Resources 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 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.