Yahoo Finance CEO & Director Daniel Burton Just Bought 42% More Shares In Health Catalyst, Inc. (NASDAQ:HCAT)
Those following along with Health Catalyst, Inc. (NASDAQ:HCAT) will no doubt be intrigued by the recent purchase of shares by Daniel Burton, CEO & Director of the company, who spent a stonking US$2.0m on stock at an average price of US$10.14. Not only is that a big swing, but it increased their holding size by 42%, which is definitely great to see.
View our latest analysis for Health Catalyst
The Last 12 Months Of Insider Transactions At Health Catalyst
In fact, the recent purchase by CEO & Director Daniel Burton was not their only acquisition of Health Catalyst shares this year. They previously made an even bigger purchase of US$2.1m worth of shares at a price of US$11.62 per share. That means that an insider was happy to buy shares at above the current price of US$10.92. 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. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
While Health Catalyst insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Health Catalyst is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Health Catalyst
For a common shareholder, it is worth checking how many shares are held by company 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. Health Catalyst insiders own about US$11m worth of shares. That equates to 1.8% of the company. 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 Does This Data Suggest About Health Catalyst Insiders?
It is good to see recent purchasing. And the longer term insider transactions also give 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. 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. You'd be interested to know, that we found 3 warning signs for Health Catalyst and we suggest you have a look.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, 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.
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