Insiders were net buyers of Hygeia Healthcare Holdings Co., Limited's (HKG:6078 ) stock during the past year. That is, insiders bought more stock than they sold.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Hygeia Healthcare Holdings
The Last 12 Months Of Insider Transactions At Hygeia Healthcare Holdings
The Chairman & Co-CEO Yiwen Zhu made the biggest insider purchase in the last 12 months. That single transaction was for HK$20m worth of shares at a price of HK$36.59 each. That means that an insider was happy to buy shares at above the current price of HK$19.28. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Yiwen Zhu was the only individual insider to buy shares in the last twelve months.
Yiwen Zhu bought 1.91m shares over the last 12 months at an average price of HK$31.33. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Hygeia Healthcare Holdings is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Hygeia Healthcare Holdings
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Hygeia Healthcare Holdings insiders own about HK$5.5b worth of shares (which is 45% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Hygeia Healthcare Holdings Insider Transactions Indicate?
The fact that there have been no Hygeia Healthcare Holdings insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Hygeia Healthcare Holdings insiders think the business has merit. Of course, the future is what matters most. So if you are interested in Hygeia Healthcare Holdings, you should check out this free report on analyst forecasts for the company.
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 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.