CEO & Director of Health Catalyst Picks Up 6.9% More Stock \
Investors who take an interest in Health Catalyst, Inc. (NASDAQ:HCAT) should definitely note that the CEO & Director, Daniel Burton, recently paid US$10.19 per share to buy US$500k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 6.9%.
See our latest analysis for Health Catalyst
The Last 12 Months Of Insider Transactions At Health Catalyst
Notably, that recent purchase by CEO & Director Daniel Burton was not the only time they bought Health Catalyst shares this year. They previously made an even bigger purchase of US$2.1m worth of shares at a price of US$11.62 per share. That means that an insider was happy to buy shares at above the current price of US$10.36. 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Health Catalyst 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!
Health Catalyst is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of Health Catalyst
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Health Catalyst insiders own about US$15m worth of shares. That equates to 2.6% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Health Catalyst Insiders?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. 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 Health Catalyst insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Health Catalyst. At Simply Wall St, we found 2 warning signs for Health Catalyst that deserve your attention before buying any shares.
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, 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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