Daniel Burton Bought 3.2% More Shares In Health Catalyst
Investors who take an interest in Health Catalyst, Inc. (NASDAQ:HCAT) should definitely note that the CEO & Director, Daniel Burton, recently paid US$7.81 per share to buy US$205k 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 3.2%.
Check out our latest analysis for Health Catalyst
The Last 12 Months Of Insider Transactions At Health Catalyst
In fact, the recent purchase by CEO & Director Daniel Burton was not their only acquisition of Health Catalyst shares this year. Earlier in the year, they paid US$10.19 per share in a US$500k purchase. That means that an insider was happy to buy shares at above the current price of US$8.25. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Daniel Burton was the only individual insider to buy shares in the last twelve months.
Daniel Burton bought 75.25k shares over the last 12 months at an average price of US$9.36. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
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. It appears that Health Catalyst insiders own 2.6% of the company, worth about US$13m. 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 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 we don't feel the same about the fact the company is making losses. 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. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Health Catalyst has 2 warning signs and it would be unwise to ignore them.
But note: Health Catalyst 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
