In This Article:
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares in Human Health Holdings Limited (HKG:1419).
What Is Insider Buying?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
See our latest analysis for Human Health Holdings
The Last 12 Months Of Insider Transactions At Human Health Holdings
While there weren't any large insider transactions in the last twelve months, it's still worth looking at the trading.
Chun Poon bought a total of 198k shares over the year at an average price of HK$1.45. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Human Health Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Human Health Holdings Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data suggests Human Health Holdings insiders own 1.9% of the company, worth about HK$11m. However, it's possible that insiders might have an indirect interest through a more complex structure. We prefer to see high levels of insider ownership.
What Might The Insider Transactions At Human Health Holdings Tell Us?
The fact that there have been no Human Health Holdings insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Human Health Holdings and their transactions don't cause us concern. Along with insider transactions, I recommend checking if Human Health Holdings is growing revenue. This free chart of historic revenue and earnings should make that easy.