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Have Insiders Sold nib holdings limited (ASX:NHF) Shares Recently?

Simply Wall St

We'd be surprised if nib holdings limited (ASX:NHF) shareholders haven't noticed that the MD, CEO & Executive Director, Mark Fitzgibbon, recently sold AU$515k worth of stock at AU$7.36 per share. On the bright side, that sale was only 2.6% of their holding, so we doubt it's very meaningful, on its own.

View our latest analysis for nib holdings

The Last 12 Months Of Insider Transactions At nib holdings

In fact, the recent sale by MD, CEO & Executive Director Mark Fitzgibbon was not their only sale of nib holdings shares this year. Earlier in the year, they fetched AU$6.66 per share in a -AU$532.6k sale. That means that even when the share price was below the current price of AU$6.96, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 3.4%of Mark Fitzgibbon's holding.

Mark Fitzgibbon ditched 150000 shares over the year. The average price per share was AU$6.99. You can see a visual depiction of insider transactions (by 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!

ASX:NHF Recent Insider Trading, October 4th 2019

If you like to buy stocks that insiders are buying, rather than selling, then you might just love 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 nib holdings insiders own 1.1% of the company, worth about AU$35m. 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 nib holdings Insiders?

An insider sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, nib holdings makes money, and is growing profits. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. Of course, the future is what matters most. So if you are interested in nib holdings, you should check out this free report on analyst forecasts for the company.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Thank you for reading.