Republic Healthcare Up 24%, Insider Buyers Are Up 14%

Last week, Republic Healthcare Limited (HKG:8357) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 24% last week, resulting in a HK$22m increase in the company's market worth, implying a 14% gain on their initial purchase. As a result, the stock they originally bought for S$4.34m is now worth S$4.93m.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Republic Healthcare Insider Transactions Over The Last Year

In fact, the recent purchase by Liang Wang was the biggest purchase of Republic Healthcare shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is HK$0.18. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.

In the last twelve months Republic Healthcare insiders were buying shares, but not selling. 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!

View our latest analysis for Republic Healthcare

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

Insiders At Republic Healthcare Have Bought Stock Recently

Over the last quarter, Republic Healthcare insiders have spent a meaningful amount on shares. Non-Executive Director Liang Wang spent HK$4.2m on stock, and there wasn't any selling. This makes one think the business has some good points.

Does Republic Healthcare Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Republic Healthcare insiders own 56% of the company, worth about HK$64m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Republic Healthcare Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Republic Healthcare. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Republic Healthcare. Be aware that Republic Healthcare is showing 3 warning signs in our investment analysis, and 2 of those shouldn't be ignored...

Of course Republic Healthcare 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.