Whilst it may not be a huge deal, we thought it was good to see that the Home Consortium Limited (ASX:HMC) Independent Non-Executive Director, Jane McAloon, recently bought AU$125k worth of stock, for AU$7.24 per share. Although the purchase is not a big one, increasing their shareholding by only 9.4%, it can be interpreted as a good sign.
View our latest analysis for Home Consortium
The Last 12 Months Of Insider Transactions At Home Consortium
Notably, that recent purchase by Jane McAloon is the biggest insider purchase of Home Consortium shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is AU$7.96. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Home Consortium share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was Jane McAloon.
The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of Home Consortium
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Home Consortium insiders own 8.0% of the company, currently worth about AU$185m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Home Consortium Tell Us?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Home Consortium. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Home Consortium. You'd be interested to know, that we found 2 warning signs for Home Consortium and we suggest you have a look.
But note: Home Consortium 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.
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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