Yiwen Zhu Spends CN¥3.0m On Hygeia Healthcare Holdings Stock

Potential Hygeia Healthcare Holdings Co., Limited (HKG:6078) shareholders may wish to note that the Chairman & Co-CEO, Yiwen Zhu, recently bought HK$3.0m worth of stock, paying HK$11.51 for each share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

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Hygeia Healthcare Holdings Insider Transactions Over The Last Year

Notably, that recent purchase by Chairman & Co-CEO Yiwen Zhu was not the only time they bought Hygeia Healthcare Holdings shares this year. They previously made an even bigger purchase of HK$23m worth of shares at a price of HK$13.83 per share. That means that an insider was happy to buy shares at above the current price of HK$11.99. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Yiwen Zhu.

Yiwen Zhu bought a total of 1.93m shares over the year at an average price of HK$13.51. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for Hygeia Healthcare Holdings

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of Hygeia Healthcare Holdings

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. We usually like to see fairly high levels of insider ownership. It's great to see that Hygeia Healthcare Holdings insiders own 47% of the company, worth about HK$3.4b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Hygeia Healthcare Holdings Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Hygeia Healthcare Holdings insiders are well aligned, and quite possibly think the share price is too low. Looks promising! 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. You'd be interested to know, that we found 2 warning signs for Hygeia Healthcare Holdings and we suggest you have a look.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.