As Fisher & Paykel Healthcare Corporation Limited (NZSE:FPH) hits NZ$15b market cap, insiders may be dismayed about not purchasing higher quantities
Last week, Fisher & Paykel Healthcare Corporation Limited (NZSE:FPH) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 3.8% last week, resulting in a NZ$550m increase in the company's market worth. In other words, the original NZ$201k purchase is now worth NZ$269k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Fisher & Paykel Healthcare
The Last 12 Months Of Insider Transactions At Fisher & Paykel Healthcare
The Independent Non-Executive Director Lisa E. McIntyre made the biggest insider purchase in the last 12 months. That single transaction was for NZ$108k worth of shares at a price of NZ$19.69 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of NZ$26.20. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Fisher & Paykel Healthcare insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. 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 Fisher & Paykel Healthcare
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 0.4% of Fisher & Paykel Healthcare shares, worth about NZ$54m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Fisher & Paykel Healthcare Insiders?
The fact that there have been no Fisher & Paykel Healthcare insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Fisher & Paykel Healthcare and their transactions don't cause us concern. While we like knowing 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. Case in point: We've spotted 1 warning sign for Fisher & Paykel Healthcare you should be aware of.
But note: Fisher & Paykel Healthcare may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, but not derivative transactions.
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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.
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