Despite Hydrofarm Holdings Group's Pullback, Insiders Still Gained US$7.3k
Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 24% decline in the stock price. Reason being, despite the recent loss, insiders original purchase value of US$54k is now worth US$61k.
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.
See our latest analysis for Hydrofarm Holdings Group
Hydrofarm Holdings Group Insider Transactions Over The Last Year
The CEO & Chairman of the Board William Toler made the biggest insider purchase in the last 12 months. That single transaction was for US$54k worth of shares at a price of US$1.09 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$1.22. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
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!
Hydrofarm Holdings Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Hydrofarm Holdings Group
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. Insiders own 13% of Hydrofarm Holdings Group shares, worth about US$7.1m, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
What Might The Insider Transactions At Hydrofarm Holdings Group Tell Us?
The fact that there have been no Hydrofarm Holdings Group insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Hydrofarm Holdings Group stock. 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. Be aware that Hydrofarm Holdings Group is showing 3 warning signs in our investment analysis, and 1 of those shouldn't be ignored...
But note: Hydrofarm Holdings Group 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 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.
