Good Fellow Healthcare Holdings Chairman & Compliance Officer Acquires 100% More Stock

Those following along with Good Fellow Healthcare Holdings Limited (HKG:8143) will no doubt be intrigued by the recent purchase of shares by Chi Lung Ng, Chairman & Compliance Officer of the company, who spent a stonking HK$16m on stock at an average price of HK$0.05. That increased their holding by a full 100%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.

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Good Fellow Healthcare Holdings Insider Transactions Over The Last Year

Notably, that recent purchase by Chi Lung Ng is the biggest insider purchase of Good Fellow Healthcare Holdings shares that we've seen in the last year. Even though the purchase was made at a significantly lower price than the recent price (HK$0.14), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Good Fellow Healthcare Holdings

Good Fellow Healthcare Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Good Fellow Healthcare Holdings Boast High Insider Ownership?

Many investors like to check how much of a company is owned by 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. Good Fellow Healthcare Holdings insiders own 57% of the company, currently worth about HK$94m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Good Fellow Healthcare Holdings Tell Us?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Good Fellow Healthcare Holdings. Nice! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example, Good Fellow Healthcare Holdings has 5 warning signs (and 3 which are concerning) we think you should know about.

Of course Good Fellow Healthcare Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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 of direct interests only, but not derivative transactions or indirect interests.

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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.