Bullish Integrated Diagnostics Holdings Insider Buying Worth ج.م1.04m Yet To Pay Off

The recent 12% drop in Integrated Diagnostics Holdings plc's (LON:IDHC) stock could come as a blow to insiders who purchased ج.م1.04m worth of stock at an average buy price of ج.م0.47 over the past 12 months. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth ج.م669.5k, which is not great.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Integrated Diagnostics Holdings

Integrated Diagnostics Holdings Insider Transactions Over The Last Year

The Group CEO & Executive Director Hend El Sherbini made the biggest insider purchase in the last 12 months. That single transaction was for US$518k worth of shares at a price of US$0.49 each. That means that even when the share price was higher than US$0.30 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Hend El Sherbini was the only individual insider to buy during the last year.

Hend El Sherbini purchased 2.20m shares over the year. The average price per share was US$0.47. 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!

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).

Does Integrated Diagnostics Holdings Boast High Insider Ownership?

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 appears that Integrated Diagnostics Holdings insiders own 27% of the company, worth about US$49m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Integrated Diagnostics Holdings Insiders?

The fact that there have been no Integrated Diagnostics Holdings insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Integrated Diagnostics Holdings and their transactions don't cause us concern. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 1 warning sign with Integrated Diagnostics Holdings and understanding it should be part of your investment process.

But note: Integrated Diagnostics Holdings 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.