Chief Executive Officer of Nordhealth Charles MacBain Buys 19% More Shares

Those following along with Nordhealth AS (OB:NORDH) will no doubt be intrigued by the recent purchase of shares by Charles MacBain, Chief Executive Officer of the company, who spent a stonking kr46m on stock at an average price of kr23.50. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 19%.

See our latest analysis for Nordhealth

Nordhealth Insider Transactions Over The Last Year

Notably, that recent purchase by Charles MacBain is the biggest insider purchase of Nordhealth shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of kr23.40. 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. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Nordhealth insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Nordhealth is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Nordhealth Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Nordhealth insiders own 56% of the company, currently worth about kr1.1b 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 Do The Nordhealth Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Nordhealth insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! 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. When we did our research, we found 2 warning signs for Nordhealth (1 makes us a bit uncomfortable!) that we believe deserve your full attention.

Of course Nordhealth 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 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.