Ryman Healthcare Limited (NZSE:RYM) insiders need another NZ$421k to breakeven on a NZ$1.7m stock purchase even after recent gains

By
Simply Wall St
Published
March 21, 2022
NZSE:RYM
Source: Shutterstock

Insiders who purchased NZ$1.7m worth of Ryman Healthcare Limited (NZSE:RYM) shares over the past year recouped some of their losses after price gained 3.2% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling NZ$421k.

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.

Check out our latest analysis for Ryman Healthcare

The Last 12 Months Of Insider Transactions At Ryman Healthcare

Over the last year, we can see that the biggest insider sale was by the insider, Gordon MacLeod, for NZ$967k worth of shares, at about NZ$14.63 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of NZ$9.75. So it may not shed much light on insider confidence at current levels.

Happily, we note that in the last year insiders paid NZ$1.7m for 130.77k shares. On the other hand they divested 96.85k shares, for NZ$1.4m. In total, Ryman Healthcare insiders bought more than they sold over the last year. They paid about NZ$12.97 on average. I'd consider this a positive as it suggests insiders see value at around the current price. 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!

insider-trading-volume
NZSE:RYM Insider Trading Volume March 21st 2022

Ryman Healthcare 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 Ryman Healthcare

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Ryman Healthcare insiders own 14% of the company, worth about NZ$661m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Ryman Healthcare Tell Us?

The fact that there have been no Ryman Healthcare insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like Ryman Healthcare insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 3 warning signs for Ryman Healthcare (of which 1 is potentially serious!) you should know about.

But note: Ryman Healthcare 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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