Yahoo Finance Need To Know: Regis Healthcare Limited (ASX:REG) Insiders Have Been Buying Shares
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We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Regis Healthcare Limited (ASX:REG).
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'
View our latest analysis for Regis Healthcare
Regis Healthcare Insider Transactions Over The Last Year
Chairman Graham Hodges made the biggest insider purchase in the last 12 months. That single transaction was for AU$94k worth of shares at a price of AU$3.13 each. So it's clear an insider wanted to buy, at around the current price, which is AU$3.27. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.
Happily, we note that in the last year insiders bought 52500 shares for a total of AU$156k. While Regis Healthcare insiders bought shares last year, they didn't sell. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Regis Healthcare is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Regis Healthcare Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Regis Healthcare. Overall, two insiders shelled out AU$126k for shares in the company -- and none sold. This makes one think the business has some good points.
Does Regis Healthcare 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Regis Healthcare insiders own about AU$558m worth of shares (which is 55% 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 Does This Data Suggest About Regis Healthcare Insiders?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Regis Healthcare. Nice! Of course, the future is what matters most. So if you are interested in Regis Healthcare, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
