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It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Ryman Healthcare Limited's (NZSE:RYM) case, it's fantastic news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Our free stock report includes 3 warning signs investors should be aware of before investing in Ryman Healthcare. Read for free now.
Ryman Healthcare Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the insider, David Bennett, for NZ$612k worth of shares, at about NZ$4.45 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of NZ$2.50. So it may not shed much light on insider confidence at current levels.
Happily, we note that in the last year insiders paid NZ$1.1m for 304.35k shares. But they sold 213.96k shares for NZ$926k. In the last twelve months there was more buying than selling by Ryman Healthcare insiders. Their average price was about NZ$3.50. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and 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!
Check out our latest analysis for Ryman Healthcare
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insiders At Ryman Healthcare Have Bought Stock Recently
It's good to see that Ryman Healthcare insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought NZ$482k worth of shares. This makes one think the business has some good points.
Insider Ownership Of Ryman Healthcare
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It appears that Ryman Healthcare insiders own 3.3% of the company, worth about NZ$85m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
