Insiders of Republic Healthcare Limited (HKG:8357) are up 25% on their S$11m purchase after Republic Healthcare Limited (HKG:8357) rose 15% last week

By
Simply Wall St
Published
February 23, 2022
SEHK:8357
Source: Shutterstock

Republic Healthcare Limited (HKG:8357) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 15% resulting in a HK$25m addition to the company’s market value. As a result, their original purchase of S$11m worth of stock is now worth S$13m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Republic Healthcare

The Last 12 Months Of Insider Transactions At Republic Healthcare

In the last twelve months, the biggest single purchase by an insider was when insider Hewen Liu bought HK$11m worth of shares at a price of HK$0.24 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$0.30. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
SEHK:8357 Insider Trading Volume February 23rd 2022

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

Insider Ownership

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. Republic Healthcare insiders own 65% of the company, currently worth about HK$123m based on the recent share price. 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 Republic Healthcare Tell Us?

It doesn't really mean much that no insider has traded Republic Healthcare shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Republic Healthcare insiders feel good about the company's future. 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. To help with this, we've discovered 4 warning signs (1 makes us a bit uncomfortable!) that you ought to be aware of before buying any shares in Republic Healthcare.

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, but not derivative transactions.

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