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Insiders were net buyers of Integrated Diagnostics Holdings plc's (LON:IDHC ) stock during the past year. That is, insiders bought more stock than they sold.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Integrated Diagnostics Holdings
Integrated Diagnostics Holdings Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Group CEO & Executive Director Hend El Sherbini for US$518k worth of shares, at about US$0.49 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$0.37). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Hend El Sherbini was the only individual insider to buy during the last year.
Hend El Sherbini purchased 2.20m shares over the year. The average price per share was US$0.47. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership Of Integrated Diagnostics Holdings
Many investors like to check how much of a company is owned by 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. It appears that Integrated Diagnostics Holdings insiders own 27% of the company, worth about US$59m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Integrated Diagnostics Holdings Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Integrated Diagnostics Holdings insiders are doubting the company, and they do own shares. 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. In terms of investment risks, we've identified 1 warning sign with Integrated Diagnostics Holdings and understanding it should be part of your investment process.