Potential EHR Resources Limited (ASX:EHX) shareholders may wish to note that the MD, CEO & Director, Peter Ravenscroft, recently bought AU$300k worth of stock, paying AU$0.096 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 250%.
EHR Resources Insider Transactions Over The Last Year
In fact, the recent purchase by Peter Ravenscroft was the biggest purchase of EHR Resources shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of AU$0.10 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the EHR Resources insiders decided to buy shares at close to current prices.
In the last twelve months EHR Resources insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does EHR Resources Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that EHR Resources insiders own about AU$4.6m worth of shares (which is 14% of the company). We do generally prefer see higher levels of insider ownership.
So What Do The EHR Resources Insider Transactions Indicate?
It is good to see recent purchasing. 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. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that EHR Resources insiders are expecting a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 3 warning signs for EHR Resources (of which 2 make us uncomfortable!) you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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.
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