When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Healthia Limited's (ASX:HLA) instance, it's good news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Healthia
The Last 12 Months Of Insider Transactions At Healthia
The Non-Executive Chairman Glen Richards made the biggest insider purchase in the last 12 months. That single transaction was for AU$750k worth of shares at a price of AU$1.47 each. That means that an insider was happy to buy shares at above the current price of AU$1.19. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. 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.
Healthia 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. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does Healthia 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 22% of Healthia shares, worth about AU$37m. 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 Healthia Insiders?
The fact that there have been no Healthia insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Insiders own shares in Healthia and we see no evidence to suggest they are worried about 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. Be aware that Healthia is showing 4 warning signs in our investment analysis, and 1 of those is a bit concerning...