Whilst it may not be a huge deal, we thought it was good to see that the Fisher & Paykel Healthcare Corporation Limited (NZSE:FPH) Vice President of Products & Technology, Andrew Somervell, recently bought NZ$67k worth of stock, for NZ$22.24 per share. That might not be a big purchase but it only increased their holding by 4.6%, and could be interpreted as a good sign.
Fisher & Paykel Healthcare Insider Transactions Over The Last Year
Notably, that recent purchase by Andrew Somervell is the biggest insider purchase of Fisher & Paykel Healthcare shares that we've seen in the last year. That means that even when the share price was higher than NZ$21.22 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. 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.
In the last twelve months Fisher & Paykel Healthcare insiders were buying shares, but not selling. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Fisher & Paykel Healthcare is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Fisher & Paykel Healthcare Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Fisher & Paykel Healthcare insiders own about NZ$51m worth of shares. That equates to 0.4% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Fisher & Paykel Healthcare Insiders?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Fisher & Paykel Healthcare insiders are well aligned, and that they may think the share price is too low. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Fisher & Paykel Healthcare.
Of course Fisher & Paykel Healthcare may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.
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