Insider Buying: The HealthCare Global Enterprises Limited (NSE:HCG) Executive Chairman Just Bought ₹2.4m Worth Of Shares

Even if it's not a huge purchase, we think it was good to see that Basavalinga Ajaikumar, the Executive Chairman of HealthCare Global Enterprises Limited (NSE:HCG) recently shelled out ₹2.4m to buy stock, at ₹172 per 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.

See our latest analysis for HealthCare Global Enterprises

The Last 12 Months Of Insider Transactions At HealthCare Global Enterprises

In fact, the recent purchase by Basavalinga Ajaikumar was the biggest purchase of HealthCare Global Enterprises shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of ₹178. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the HealthCare Global Enterprises insiders decided to buy shares at close to current prices.

While HealthCare Global Enterprises insiders bought shares during the last year, they didn't sell. 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!

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.

Does HealthCare Global Enterprises Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. HealthCare Global Enterprises insiders own about ₹4.3b worth of shares. That equates to 19% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About HealthCare Global Enterprises Insiders?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest HealthCare Global Enterprises insiders are well aligned, and quite possibly think the share price is too low. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 1 warning sign for HealthCare Global Enterprises you should know about.

But note: HealthCare Global Enterprises 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, but not derivative transactions.

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