Whilst it may not be a huge deal, we thought it was good to see that the EuroEyes International Eye Clinic Limited (HKG:1846) Founder, Jörn Jörgensen, recently bought HK$383k worth of stock, for HK$6.96 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

See our latest analysis for EuroEyes International Eye Clinic

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

In fact, the recent purchase by Founder Jörn Jörgensen was not their only acquisition of EuroEyes International Eye Clinic shares this year. Earlier in the year, they paid HK$11.63 per share in a HK$2.6m purchase. That means that even when the share price was higher than HK$6.74 (the recent price), an insider wanted to purchase shares. 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. 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.

In the last twelve months EuroEyes International Eye Clinic insiders were buying shares, but not selling. The average buy price was around HK$8.82. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of EuroEyes International Eye Clinic

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. 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$1.2b worth of shares (which is 55% of the company). 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 EuroEyes International Eye Clinic Tell Us?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives 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. Nice! Of course, the future is what matters most. So if you are interested in EuroEyes International Eye Clinic, you should check out this free report on analyst forecasts for the company.

Of course EuroEyes International Eye Clinic 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.

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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.