Himalaya Shipping Insiders Enjoying US$1.4m Appreciation On US$6.21m Investment

Himalaya Shipping Ltd. (OB:HSHP) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 11% resulting in a kr316m addition to the company’s market value. As a result, the stock they originally bought for US$6.21m is now worth US$7.59m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Himalaya Shipping

The Last 12 Months Of Insider Transactions At Himalaya Shipping

In the last twelve months, the biggest single purchase by an insider was when Director Bjorn Isaksen bought kr3.1m worth of shares at a price of kr62.00 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of kr75.00. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Himalaya Shipping insiders may have bought shares in the last year, but they didn't sell any. 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!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insiders At Himalaya Shipping Have Bought Stock Recently

It's good to see that Himalaya Shipping insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought kr3.3m worth of shares. This makes one think the business has some good points.

Insider Ownership Of Himalaya Shipping

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Himalaya Shipping insiders own 3.7% of the company, worth about kr123m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Himalaya Shipping Insider Transactions Indicate?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Himalaya Shipping. Nice! 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. Every company has risks, and we've spotted 1 warning sign for Himalaya Shipping you should know about.

But note: Himalaya Shipping 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.