Insiders who bought AU$461.2k worth of Intelicare Holdings Limited (ASX:ICR) stock in the last year have seen some of their losses recouped as the stock gained 29% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling AU$66k.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Intelicare Holdings
Over the last year, we can see that the biggest insider purchase was by insider Carl Charalambous for AU$292k worth of shares, at about AU$0.011 per share. That means that even when the share price was higher than AU$0.009 (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.
Intelicare Holdings insiders may have bought shares in the last year, but they didn't sell any. 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!
Intelicare Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
There was some insider buying at Intelicare Holdings over the last quarter. insider Carl Charalambous purchased AU$40k worth of shares in that period. We like it when there are only buyers, and no sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 24% of Intelicare Holdings shares, worth about AU$1.0m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Intelicare Holdings insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Intelicare Holdings has 6 warning signs and it would be unwise to ignore these.
Of course Intelicare Holdings 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 of direct interests only, but not derivative transactions or indirect interests.
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