This Ryman Healthcare Insider Reduced Their Stake By 81%

From what we can see, insiders were net sellers in Ryman Healthcare Limited's (NZSE:RYM ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Ryman Healthcare

The Last 12 Months Of Insider Transactions At Ryman Healthcare

The insider, David Bennett, made the biggest insider sale in the last 12 months. That single transaction was for NZ$612k worth of shares at a price of NZ$4.45 each. So it's clear an insider wanted to take some cash off the table, even below the current price of NZ$5.08. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 81% of David Bennett's stake. David Bennett was the only individual insider to sell over the last year.

In the last twelve months insiders purchased 108.62k shares for NZ$425k. But insiders sold 173.05k shares worth NZ$751k. David Bennett sold a total of 173.05k shares over the year at an average price of NZ$4.34. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Does Ryman Healthcare 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. We usually like to see fairly high levels of insider ownership. Ryman Healthcare insiders own 4.9% of the company, currently worth about NZ$171m based on the recent share price. 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?

There haven't been any insider transactions in the last three months -- that doesn't mean much. While we feel good about high insider ownership of Ryman Healthcare, we can't say the same about the selling of shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 3 warning signs with Ryman Healthcare and understanding them should be part of your investment process.

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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.