Have Ryman Healthcare Insiders Been Selling Stock?

Anyone interested in Ryman Healthcare Limited (NZSE:RYM) should probably be aware that a company insider, David Bennett, recently divested NZ$612k worth of shares in the company, at an average price of NZ$4.36 each. In particular, we note that the sale equated to a 81% reduction in their position size, which doesn't exactly instill confidence.

Check out our latest analysis for Ryman Healthcare

The Last 12 Months Of Insider Transactions At Ryman Healthcare

Notably, that recent sale by David Bennett is the biggest insider sale of Ryman Healthcare shares that we've seen in the last year. That means that even when the share price was slightly below the current price of NZ$4.49, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was 81% of David Bennett's holding.

Over the last year, we can see that insiders have bought 79.12k shares worth NZ$293k. But they sold 193.33k shares for NZ$886k. All up, insiders sold more shares in Ryman Healthcare than they bought, over the last year. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does Ryman Healthcare Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that Ryman Healthcare insiders own 4.9% of the company, worth about NZ$151m. 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 Do The Ryman Healthcare Insider Transactions Indicate?

The stark truth for Ryman Healthcare is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn't give us much comfort. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Ryman Healthcare has 4 warning signs we think you should be aware of.

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 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com