Yahoo Finance Trade Alert: The Independent Non-Executive Chairman Of Estia Health Limited (ASX:EHE), Gary Weiss, Has Just Spent AU$52k Buying 32% More Shares
Whilst it may not be a huge deal, we thought it was good to see that the Estia Health Limited (ASX:EHE) Independent Non-Executive Chairman, Gary Weiss, recently bought AU$52k worth of stock, for AU$2.07 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 32%.
View our latest analysis for Estia Health
Estia Health Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when CEO, MD & Director Sean Bilton bought AU$106k worth of shares at a price of AU$2.18 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$2.08). 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. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Estia Health insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Estia Health is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Estia Health Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Estia Health insiders own about AU$15m worth of shares (which is 2.8% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Do The Estia Health Insider Transactions Indicate?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Estia Health insiders are well aligned, and that they may think the share price is too low. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: Estia Health 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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