In the last year, multiple insiders have substantially increased their holdings of Alibaba Health Information Technology Limited (HKG:241) stock, indicating that insiders' optimism about the company's prospects has increased.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See 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$4.70). 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Notably Difan Shen was also the biggest seller.

Over the last year, we can see that insiders have bought 1.17m shares worth HK$8.7m. But insiders sold 21.39k shares worth HK$108k. In total, Alibaba Health Information Technology insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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.

Insiders At Alibaba Health Information Technology Have Sold Stock Recently

We have seen a bit of insider selling at Alibaba Health Information Technology, over the last three months. Insiders sold just HK$108k worth of shares in that time. It's not great to see insider selling, nor the lack of recent buyers. But the selling simply isn't sufficiently substantial to be of much use as a signal.

Insider Ownership Of Alibaba Health Information Technology

For a common shareholder, it is worth checking how many shares are held by company 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. It's great to see that Alibaba Health Information Technology insiders own 5.8% of the company, worth about HK$3.7b. 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 Do The Alibaba Health Information Technology Insider Transactions Indicate?

Insiders sold Alibaba Health Information Technology shares recently, but they didn't buy any. On the other hand, the insider transactions over the last year are encouraging. We are also comforted by the high levels of insider ownership. So we're happy to look past recent trading. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 1 warning sign for Alibaba Health Information Technology you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

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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.