Those following along with Perfect Medical Health Management Limited (HKG:1830) will no doubt be intrigued by the recent purchase of shares by Kong Au-Yeung, Founder of the company, who spent a stonking HK$20m on stock at an average price of HK$4.09. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 0.9%.

Check out our latest analysis for Perfect Medical Health Management

The Last 12 Months Of Insider Transactions At Perfect Medical Health Management

Notably, that recent purchase by Founder Kong Au-Yeung was not the only time they bought Perfect Medical Health Management shares this year. Earlier in the year, they paid HK$6.48 per share in a HK$115m purchase. That means that an insider was happy to buy shares at above the current price of HK$3.91. 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. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Kong Au-Yeung was the only individual insider to buy shares in the last twelve months.

Kong Au-Yeung bought a total of 27.39m shares over the year at an average price of HK$5.81. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Perfect Medical Health Management is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

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. Perfect Medical Health Management insiders own 73% of the company, currently worth about HK$3.5b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Perfect Medical Health Management Tell Us?

Insider sales and purchases have netted out over the last three months, so it's hard to draw any conclusion from recent trading. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like Perfect Medical Health Management insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. While we like knowing 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 3 warning signs for Perfect Medical Health Management 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, 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.