Potential Alignment Healthcare, Inc. (NASDAQ:ALHC) shareholders may wish to note that the Founder, John Kao, recently bought US$497k worth of stock, paying US$4.82 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 3.4%.
The Last 12 Months Of Insider Transactions At Alignment Healthcare
Notably, that recent purchase by John Kao is the biggest insider purchase of Alignment Healthcare shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of US$4.79. 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. John Kao was the only individual insider to buy shares in the last twelve months. We note that John Kao was also the biggest seller.
Over the last year we saw more insider selling of Alignment Healthcare shares, than buying. 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!
I will like Alignment Healthcare better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership Of Alignment Healthcare
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 5.4% of Alignment Healthcare shares, worth about US$50m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Alignment Healthcare Tell Us?
It's certainly positive to see the recent insider purchase. However, the longer term transactions are not so encouraging. We don't take much heart from transactions by Alignment Healthcare insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. Overall they seem reasonably aligned. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - Alignment Healthcare has 2 warning signs we think you should be aware of.
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 of direct interests only, but not derivative transactions or indirect interests.
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