Whilst it may not be a huge deal, we thought it was good to see that the Fisher & Paykel Healthcare Corporation Limited (NZSE:FPH) Independent Non-Executive Director, Lisa E. McIntyre, recently bought NZ$108k worth of stock, for NZ$19.69 per share. Even though that isn't a massive buy, it did increase their holding by 125%, which is arguably a good sign.
Fisher & Paykel Healthcare Insider Transactions Over The Last Year
In fact, the recent purchase by Independent Non-Executive Director Lisa E. McIntyre was not their only acquisition of Fisher & Paykel Healthcare shares this year. They previously made an even bigger purchase of NZ$143k worth of shares at a price of NZ$32.45 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being NZ$19.79). 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. To us, it's very important to consider the price insiders pay for shares. 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.
While Fisher & Paykel Healthcare insiders bought shares during the last year, they didn't sell. They paid about NZ$25.03 on average. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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.
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.4% of Fisher & Paykel Healthcare shares, worth about NZ$41m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Fisher & Paykel Healthcare Insiders?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Fisher & Paykel Healthcare shares, given these transactions (along with notable insider ownership of the company). If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: Fisher & Paykel Healthcare 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, 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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