Hyliion Holdings Loses US$47m Market Value But Insiders See Windfall Of US$838k

Insiders who bought Hyliion Holdings Corp. (NYSE:HYLN) stock lover the last 12 months are probably not as affected by last week’s 12% loss. Reason being, despite the recent loss, insiders original purchase value of US$392.0k is now worth US$1.23m.

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.

View our latest analysis for Hyliion Holdings

Hyliion Holdings Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Founder Thomas Healy bought US$158k worth of shares at a price of US$0.64 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$2.00. 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.

In the last twelve months insiders purchased 615.00k shares for US$392k. But they sold 37.50k shares for US$23k. In total, Hyliion Holdings insiders bought more than they sold 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insiders At Hyliion Holdings Have Bought Stock Recently

There was some insider buying at Hyliion Holdings over the last quarter. Chief Commercial Officer Govindaraj Ramasamy shelled out US$15k for shares in that time. It's great to see that insiders are only buying, not selling. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Insider Ownership Of Hyliion Holdings

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 24% of Hyliion Holdings shares, worth about US$92m. 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 Does This Data Suggest About Hyliion Holdings Insiders?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Hyliion Holdings insiders are doubting the company, and they do own shares. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 3 warning signs for Hyliion Holdings you should be aware of, and 2 of these are a bit unpleasant.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

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