Insiders who bought CN¥128m worth of New Horizon Health Limited (HKG:6606) stock in the last year have seen some of their losses recouped as the stock gained 19% last week. However, total losses seen by insiders are still CN¥3.4m but in since the time of purchase.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At New Horizon Health
In the last twelve months, the biggest single purchase by an insider was when insider Siu Hang Mak bought HK$99m worth of shares at a price of HK$31.15 per share. That means that even when the share price was higher than HK$29.65 (the recent price), an insider wanted to purchase shares. 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. 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. The only individual insider to buy over the last year was Siu Hang Mak.
Siu Hang Mak bought 4.21m shares over the last 12 months at an average price of HK$30.45. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
New Horizon Health is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of New Horizon Health
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. New Horizon Health insiders own 21% of the company, currently worth about HK$2.4b based on the recent share price. 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 Does This Data Suggest About New Horizon Health Insiders?
The fact that there have been no New Horizon Health insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like New Horizon Health insiders think the business has merit. 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. For example - New Horizon Health has 3 warning signs we think you should be aware of.
Of course New Horizon Health may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.
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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.
New Horizon Health
New Horizon Health Limited, an investment holding company, engages in the research and development of screening products for colorectal, cervical, and other types of cancer in the People’s Republic of China.
Exceptional growth potential with mediocre balance sheet.