Insiders who purchased CN¥8.7m worth of Alibaba Health Information Technology Limited (HKG:241) shares over the past year recouped some of their losses after price gained 13% last week. However, total losses seen by insiders are still CN¥2.1m but in since the time of purchase.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Alibaba Health Information Technology

Alibaba Health Information Technology Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when COO & Executive Director Difan Shen bought HK$4.5m worth of shares at a price of HK$7.54 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$5.63). 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. We note that Difan Shen was both the biggest buyer and the biggest seller.

Happily, we note that in the last year insiders paid HK$8.7m for 1.17m shares. But they sold 21.39k shares for HK$108k. In total, Alibaba Health Information Technology insiders bought more than they sold over the last year. 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!

Alibaba Health Information Technology is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Alibaba Health Information Technology insiders own about HK$4.4b worth of shares (which is 5.8% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Alibaba Health Information Technology Tell Us?

The fact that there have been no Alibaba Health Information Technology insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Alibaba Health Information Technology insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Alibaba Health Information Technology. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Alibaba Health Information Technology.

Of course Alibaba Health Information Technology 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, 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.