Pleasing Signs As A Number Of Insiders Buy Hill & Smith Stock

Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Hill & Smith PLC (LON:HILS), that sends out a positive message to the company's shareholders.

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.

Our free stock report includes 1 warning sign investors should be aware of before investing in Hill & Smith. Read for free now.

Hill & Smith Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when CEO, Member of Executive Board & Director Rutger Helbing bought UK£204k worth of shares at a price of UK£20.39 per share. That means that even when the share price was higher than UK£19.50 (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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While Hill & Smith 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!

Check out our latest analysis for Hill & Smith

Hill & Smith is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Hill & Smith Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Hill & Smith. In total, insiders bought UK£117k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.

Does Hill & Smith 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. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own UK£2.7m worth of Hill & Smith stock, about 0.2% of the company. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Hill & Smith Tell Us?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Hill & Smith insiders are reasonably well aligned, and optimistic for the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - Hill & Smith has 1 warning sign we think you should be aware of.

Of course Hill & Smith 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.