EuroEyes International Eye Clinic Insider Buyers See Boost After Market Cap Rose HK$103m

EuroEyes International Eye Clinic Limited (HKG:1846) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 10% resulting in a HK$103m addition to the company’s market value. Put another way, the original HK$5.05m acquisition is now worth HK$5.78m.

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.

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The Last 12 Months Of Insider Transactions At EuroEyes International Eye Clinic

The Founder Jörn Jörgensen made the biggest insider purchase in the last 12 months. That single transaction was for HK$1.7m worth of shares at a price of HK$2.84 each. We do like to see buying, but this purchase was made at well below the current price of HK$3.42. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

While EuroEyes International Eye Clinic insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for EuroEyes International Eye Clinic

EuroEyes International Eye Clinic is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

EuroEyes International Eye Clinic Insiders Bought Stock Recently

It's good to see that EuroEyes International Eye Clinic insiders have made notable investments in the company's shares. We can see that VP of Denmark & Executive Director Jannik Jørgensen paid HK$659k for shares in the company. No-one sold. That shows some optimism about the company's future.

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. EuroEyes International Eye Clinic insiders own about HK$708m worth of shares (which is 65% of the company). 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 EuroEyes International Eye Clinic Insiders?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest EuroEyes International Eye Clinic insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! 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. You'd be interested to know, that we found 2 warning signs for EuroEyes International Eye Clinic and we suggest you have a look.

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 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.