Insiders Buying Hyliion Holdings Might Wish They Invested More, Stock Gains 37%

Hyliion Holdings Corp. (NYSE:HYLN) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 37% resulting in a US$92m addition to the company’s market value. In other words, the original US$377.0k purchase is now worth US$1.13m.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Hyliion Holdings

The Last 12 Months Of Insider Transactions At Hyliion Holdings

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$1.86. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Happily, we note that in the last year insiders paid US$377k for 605.00k shares. But insiders sold 37.50k shares worth US$23k. In total, Hyliion Holdings insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Hyliion Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Hyliion Holdings insiders own 23% of the company, worth about US$75m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Hyliion Holdings Tell Us?

The fact that there have been no Hyliion Holdings insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Hyliion Holdings and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Hyliion Holdings. Every company has risks, and we've spotted 4 warning signs for Hyliion Holdings (of which 2 make us uncomfortable!) you should know about.

Of course Hyliion Holdings 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.