Stock Analysis
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- NYSE:BBLN
Have Insiders Sold Babylon Holdings Limited (NYSE:BBLN) Shares Recently?
Investors may wish to note that the Global Chief Medical Officer of Babylon Holdings Limited, Darshak Sanghavi, recently netted US$74k from selling stock, receiving an average price of US$7.74. It might not be a huge sale, but it did reduce their holding size 19%, hardly encouraging.
View our latest analysis for Babylon Holdings
The Last 12 Months Of Insider Transactions At Babylon Holdings
Notably, that recent sale by Darshak Sanghavi is the biggest insider sale of Babylon Holdings shares that we've seen in the last year. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$5.89. So it is hard to draw any strong conclusion from it.
The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of Babylon Holdings
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Babylon Holdings insiders own about US$49m worth of shares. That equates to 34% 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 Babylon Holdings Insiders?
An insider sold Babylon Holdings shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 6 warning signs for Babylon Holdings (3 can't be ignored!) and we strongly recommend you look at them before investing.
But note: Babylon Holdings 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.
What are the risks and opportunities for Babylon Holdings?
Babylon Holdings Limited operates as a digital healthcare company.
Rewards
Revenue is forecast to grow 10.88% per year
Revenue grew by 245.9% over the past year
Risks
Has less than 1 year of cash runway
Shareholders have been substantially diluted in the past year
Negative shareholders equity
Significant insider selling over the past 3 months
Volatile share price over the past 3 months
Currently unprofitable and not forecast to become profitable over the next 3 years
Further research on
Babylon Holdings
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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.
About NYSE:BBLN
Babylon Holdings
Babylon Holdings Limited operates as a digital healthcare company.
Good value with concerning outlook.
