Alibaba Health Information Technology Limited (HKG:241) shareholders (or potential shareholders) will be happy to see that the COO & Executive Director, Difan Shen, recently bought a whopping HK$4.5m worth of stock, at a price of HK$7.54.That purchase boosted their holding by 429%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.
View our latest analysis for Alibaba Health Information Technology
Alibaba Health Information Technology Insider Transactions Over The Last Year
Notably, that recent purchase by Difan Shen is the biggest insider purchase of Alibaba Health Information Technology shares that we've seen in the last year. That means that even when the share price was higher than HK$7.13 (the recent price), an insider wanted to purchase shares.It's very possible they regret the purchase, but it's more likely they are bullish about the company.In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Happily, we note that in the last year insiders paid HK$12m for 1.30m shares.On the other hand they divested 38.50k shares, for HK$906k. Overall, Alibaba Health Information Technology insiders were net buyers during the last year.Their average price was about HK$9.43. I'd consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below.By clicking on the graph below, you can see the precise details of each insider transaction!
Alibaba Health Information Technology is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Alibaba Health Information Technology Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company 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. It's great to see that Alibaba Health Information Technology insiders own 5.8% of the company, worth about HK$5.6b.This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Alibaba Health Information Technology Tell Us?
It is good to see the recent insider purchase.And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Alibaba Health Information Technology.Nice!So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company.For example - Alibaba Health Information Technology has 1 warning sign we think you should be aware of.
Of course Alibaba Health Information Technology may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
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