Yahoo Finance Great news for Ryman Healthcare Limited (NZSE:RYM): Insiders acquired stock in large numbers last year
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Ryman Healthcare Limited's (NZSE:RYM) instance, it's good news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Ryman Healthcare
Ryman Healthcare Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider David Kerr for NZ$194k worth of shares, at about NZ$12.95 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being NZ$9.11). 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Over the last year, we can see that insiders have bought 58.14k shares worth NZ$646k. But they sold 1.50k shares for NZ$14k. In total, Ryman Healthcare insiders bought more than they sold over the last year. The average buy price was around NZ$11.10. I'd consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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.
Insiders At Ryman Healthcare Have Bought Stock Recently
Over the last three months, we've seen significantly more insider buying, than insider selling, at Ryman Healthcare. In total, eight insiders bought NZ$283k worth of shares in that time. But Deputy Chairman Warren Bell sold shares worth NZ$14k. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.
Does Ryman Healthcare Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Ryman Healthcare insiders own about NZ$317m worth of shares (which is 7.0% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Ryman Healthcare Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Ryman Healthcare. That's what I like to see! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For instance, we've identified 3 warning signs for Ryman Healthcare (2 are concerning) you should be aware of.
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.
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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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