In This Article:
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in New Century Healthcare Holding Co. Limited (HKG:1518).
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. 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.
View our latest analysis for New Century Healthcare Holding
The Last 12 Months Of Insider Transactions At New Century Healthcare Holding
While there weren't any large insider transactions in the last twelve months, it's still worth looking at the trading.
Zhou Jason bought 382000 shares over the last 12 months at an average price of HK$6.33. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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.
Insider Ownership of New Century Healthcare Holding
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. New Century Healthcare Holding insiders own 44% of the company, currently worth about HK$643m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The New Century Healthcare Holding Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, New Century Healthcare Holding insiders feel good about the company's future. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for New Century Healthcare Holding.