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Even if it's not a huge purchase, we think it was good to see that Warwick Smith, the Non-Executive Director of Estia Health Limited (ASX:EHE) recently shelled out AU$101k to buy stock, at AU$1.56 per share. Even though that isn't a massive buy, it did increase their holding by 56%, which is arguably a good sign.
The Last 12 Months Of Insider Transactions At Estia Health
In fact, the recent purchase by Warwick Smith was the biggest purchase of Estia Health shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$1.55). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay 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.
Estia Health 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 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 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 Estia Health Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Our data indicates that Estia Health insiders own about AU$8.2m worth of shares (which is 2.0% of the company). We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Estia Health Insiders?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Estia Health insiders are expecting a bright future. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Estia Health.
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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