Change Healthcare Inc. (NASDAQ:CHNG) shareholders (or potential shareholders) will be happy to see that the Executive VP & CFO, Fredrik Eliasson, recently bought a whopping US$1.2m worth of stock, at a price of US$12.00. That purchase boosted their holding by 143%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.
Change Healthcare Insider Transactions Over The Last Year
Notably, that recent purchase by Fredrik Eliasson is the biggest insider purchase of Change Healthcare shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$10.59). Their view may have changed since then, but at least it shows they felt optimistic at the time. 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.
Change Healthcare 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 individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Change Healthcare 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 Change 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.2% of Change Healthcare shares, worth about US$7.9m, according to our data. We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Change Healthcare Tell Us?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Change Healthcare insiders are expecting a bright future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - Change Healthcare has 1 warning sign we think you should be aware of.
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. 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. Thank you for reading.