Insiders At Halma Sold UK£2.3m In Stock, Alluding To Potential Weakness

Many Halma plc (LON:HLMA) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Halma

Halma Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Group Talent, Jennifer Ward, sold UK£1.3m worth of shares at a price of UK£26.48 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of UK£27.70. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 28% of Jennifer Ward's stake.

All up, insiders sold more shares in Halma than they bought, over the last year. 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!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Halma Insiders Bought Stock Recently

Over the last quarter, Halma insiders have spent a meaningful amount on shares. Specifically, CFO Designate & Independent Non-Executive Director Carole Cran bought UK£213k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.

Insider Ownership Of Halma

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Halma insiders own about UK£7.3m worth of shares (which is 0.07% of the company). We do generally prefer see higher levels of insider ownership.

So What Do The Halma Insider Transactions Indicate?

The recent insider purchase is heartening. But we can't say the same for the transactions over the last 12 months. Neither the level of insider ownership, nor the transactions over the last twelve months inspire us, but we think the recent buying is positive. Of course, the future is what matters most. So if you are interested in Halma, you should check out this free report on analyst forecasts for the company.

But note: Halma 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.