Have Insiders Been Buying Hycroft Mining Holding Corporation (NASDAQ:HYMC) Shares?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Hycroft Mining Holding Corporation (NASDAQ:HYMC).

What Is Insider Selling?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

See our latest analysis for Hycroft Mining Holding

The Last 12 Months Of Insider Transactions At Hycroft Mining Holding

The President Diane Garrett made the biggest insider purchase in the last 12 months. That single transaction was for US$123k worth of shares at a price of US$7.10 each. That means that an insider was happy to buy shares at around the current price of US$7.16. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Hycroft Mining Holding share holders is that insiders were buying at near the current price.

Hycroft Mining Holding insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Insiders at Hycroft Mining Holding Have Bought Stock Recently

It's good to see that Hycroft Mining Holding insiders have made notable investments in the company's shares. Overall, two insiders shelled out US$346k for shares in the company -- and none sold. That shows some optimism about the company's future.

Insider Ownership of Hycroft Mining Holding

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Our data isn't picking up on much insider ownership at Hycroft Mining Holding, though insiders do hold about US$495k worth of shares. We might be missing something but that seems like very low insider ownership.

What Might The Insider Transactions At Hycroft Mining Holding Tell Us?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Hycroft Mining Holding insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with Hycroft Mining Holding and understanding them should be part of your investment process.

Of course Hycroft Mining Holding 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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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