CEO & Executive Director of Hudaco Industries Graham Dunford Buys 21% More Shares

Hudaco Industries Limited (JSE:HDC) shareholders (or potential shareholders) will be happy to see that the CEO & Executive Director, Graham Dunford, recently bought a whopping R11m worth of stock, at a price of R162. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 21%.

View our latest analysis for Hudaco Industries

The Last 12 Months Of Insider Transactions At Hudaco Industries

In fact, the recent purchase by Graham Dunford was the biggest purchase of Hudaco Industries shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than R160 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. We note that Graham Dunford was also the biggest seller.

Over the last year, we can see that insiders have bought 191.92k shares worth R32m. On the other hand they divested 80.10k shares, for R14m. In the last twelve months there was more buying than selling by Hudaco Industries insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Hudaco Industries is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Hudaco Industries Boast High Insider Ownership?

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 3.3% of Hudaco Industries shares, worth about R148m, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Hudaco Industries Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Hudaco Industries insiders are well aligned, and quite possibly think the share price is too low. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Hudaco Industries. For example - Hudaco Industries has 1 warning sign we think you should be aware of.

But note: Hudaco Industries 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, but not derivative transactions.

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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.