Potential Protech Home Medical Corp. (CVE:PTQ) shareholders may wish to note that the Chairman, Gregory Crawford, recently bought CA$148k worth of stock, paying CA$0.59 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 6.8%.
The Last 12 Months Of Insider Transactions At Protech Home Medical
Notably, that recent purchase by Gregory Crawford is the biggest insider purchase of Protech Home Medical shares that we've seen in the last year. That means that even when the share price was higher than CA$0.57 (the recent price), an insider wanted to purchase shares. 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. The only individual insider to buy over the last year was Gregory Crawford.
The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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).
Does Protech Home Medical Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own CA$2.2m worth of Protech Home Medical stock, about 4.7% of the company. We consider this fairly low insider ownership.
So What Does This Data Suggest About Protech Home Medical Insiders?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Protech Home Medical insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 4 warning signs for Protech Home Medical that deserve your attention before buying any shares.
But note: Protech Home Medical 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, but not derivative transactions.
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