Hallador Energy Independent Director Acquires 4.0% More Stock

Investors who take an interest in Hallador Energy Company (NASDAQ:HNRG) should definitely note that the Independent Director, Charles Wesley, recently paid US$19.28 per share to buy US$251k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 4.0%.

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The Last 12 Months Of Insider Transactions At Hallador Energy

The Independent Director, David Hardie, made the biggest insider sale in the last 12 months. That single transaction was for US$851k worth of shares at a price of US$19.65 each. That means that even when the share price was below the current price of US$20.39, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 49% of David Hardie's holding. David Hardie was the only individual insider to sell shares in the last twelve months.

In the last twelve months insiders purchased 52.00k shares for US$782k. But insiders sold 148.40k shares worth US$2.9m. David Hardie ditched 148.40k shares over the year. The average price per share was US$19.41. 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!

View our latest analysis for Hallador Energy

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Insider Ownership Of Hallador Energy

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Hallador Energy insiders own 10% of the company, worth about US$91m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Hallador Energy Tell Us?

The stark truth for Hallador Energy is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn't give us much comfort. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Hallador Energy has 2 warning signs (and 1 which can't be ignored) we think you should know about.

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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.