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One Third Age Health Services Limited (NZSE:TAH) insider upped their stake by -200% in the previous year

Viewing insider transactions for Third Age Health Services Limited's (NZSE:TAH ) over the last year, we see that insiders were net buyers. This means that a larger number of shares were purchased by insiders in relation to shares sold.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Third Age Health Services

Third Age Health Services Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Timothy Livingstone bought NZ$2.3m worth of shares at a price of NZ$2.75 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being NZ$2.50). 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. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Timothy Livingstone.

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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!

insider-trading-volume
insider-trading-volume

Third Age Health Services is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insiders at Third Age Health Services Have Bought Stock Recently

Over the last three months, we've seen significantly more insider buying, than insider selling, at Third Age Health Services. We can see that insider Timothy Livingstone paid NZ$2.3m for shares in the company. But we did see Founder & Chairman of the Board Bevan Walsh sell shares worth NZ$20k. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.

Insider Ownership of Third Age Health Services

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Third Age Health Services insiders own 89% of the company, worth about NZ$22m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Third Age Health Services Insiders?

It is good to see the recent insider purchase. 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 Third Age Health Services. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 4 warning signs that you should run your eye over to get a better picture of Third Age Health Services.

But note: Third Age Health Services 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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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