Potential Health Catalyst, Inc. (NASDAQ:HCAT) shareholders may wish to note that the CEO & Director, Daniel Burton, recently bought US$205k worth of stock, paying US$7.81 for each share. Although the purchase only increased their holding by 3.2%, it is still a solid purchase in our view.
Health Catalyst Insider Transactions Over The Last Year
Notably, that recent purchase by CEO & Director Daniel Burton was not the only time they bought Health Catalyst shares this year. Earlier in the year, they paid US$10.19 per share in a US$500k purchase. That means that an insider was happy to buy shares at above the current price of US$8.06. 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. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Daniel Burton was the only individual insider to buy shares in the last twelve months.
Daniel Burton purchased 75.25k shares over the year. The average price per share was US$9.36. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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
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. Insiders own 2.6% of Health Catalyst shares, worth about US$13m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Health Catalyst Tell Us?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Health Catalyst we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Health Catalyst. In terms of investment risks, we've identified 2 warning signs with Health Catalyst and understanding these should be part of your investment process.
But note: Health Catalyst may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 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.