Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Hiscox Ltd (LON:HSX), it sends a favourable message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Hiscox Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Group Chief Underwriting Officer & Executive Director Joanne Musselle for UK£150k worth of shares, at about UK£7.93 per share. Even though the purchase was made at a significantly lower price than the recent price (UK£9.23), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months Hiscox insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Hiscox is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of Hiscox
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Hiscox insiders own about UK£42m worth of shares. That equates to 1.3% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Hiscox Insiders?
It doesn't really mean much that no insider has traded Hiscox shares in the last quarter. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Hiscox insiders are doubting the company, and they do own shares. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Hiscox.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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. 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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