Nasdaq
华尔街日报Good Fellow Healthcare Holdings Up 15%, Insider Buyers Are Up 302%
Insiders who bought Good Fellow Healthcare Holdings Limited (HKG:8143) stock in the last 12 months were richly rewarded last week. The company's market value increased by HK$30m as a result of the stock's 15% gain over the same period. In other words, the original HK$16.4m purchase is now worth HK$66.0m.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At Good Fellow Healthcare Holdings
The Chairman & Compliance Officer Chi Lung Ng made the biggest insider purchase in the last 12 months. That single transaction was for HK$16m worth of shares at a price of HK$0.05 each. We do like to see buying, but this purchase was made at well below the current price of HK$0.20. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
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!
View our latest analysis for Good Fellow Healthcare Holdings
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).
Does Good Fellow Healthcare Holdings Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that Good Fellow Healthcare Holdings insiders own 57% of the company, worth about HK$132m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Good Fellow Healthcare Holdings Insider Transactions Indicate?
The fact that there have been no Good Fellow Healthcare Holdings insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Good Fellow Healthcare Holdings insiders feel good about the company's future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example, Good Fellow Healthcare Holdings has 5 warning signs (and 2 which shouldn't be ignored) we think you should know about.
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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.