Have Regis Healthcare Insiders Been Selling Stock?

We wouldn't blame Regis Healthcare Limited (ASX:REG) shareholders if they were a little worried about the fact that Bryan Dorman, the Non-Executive Director recently netted about AU$68m selling shares at an average price of AU$3.90. That sale reduced their total holding by 21% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for Regis Healthcare

The Last 12 Months Of Insider Transactions At Regis Healthcare

Notably, that recent sale by Bryan Dorman is the biggest insider sale of Regis Healthcare shares that we've seen in the last year. That means that even when the share price was slightly below the current price of AU$3.97, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 21% of Bryan Dorman's holding.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insider Ownership Of Regis Healthcare

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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Regis Healthcare insiders own 56% of the company, worth about AU$670m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Regis Healthcare Tell Us?

The stark truth for Regis Healthcare is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with Regis Healthcare and understanding this should be part of your investment process.

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.