EuroEyes International Eye Clinic's HK$83m Market Cap Fall Books Insider Losses

The recent 10% drop in EuroEyes International Eye Clinic Limited's (HKG:1846) stock could come as a blow to insiders who purchased HK$2.08m worth of stock at an average buy price of HK$2.60 over the past 12 months. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only HK$1.83m.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

The Last 12 Months Of Insider Transactions At EuroEyes International Eye Clinic

Over the last year, we can see that the biggest insider purchase was by Founder Jörn Jörgensen for HK$2.1m worth of shares, at about HK$2.60 per share. That means that an insider was happy to buy shares at above the current price of HK$2.29. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Jörn Jörgensen.

The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for EuroEyes International Eye Clinic

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Does EuroEyes International Eye Clinic Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. EuroEyes International Eye Clinic insiders own about HK$476m worth of shares (which is 65% of the company). 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 EuroEyes International Eye Clinic Insider Transactions Indicate?

The fact that there have been no EuroEyes International Eye Clinic insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, EuroEyes International Eye Clinic insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing EuroEyes International Eye Clinic. For instance, we've identified 4 warning signs for EuroEyes International Eye Clinic (1 can't be ignored) you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.