Insider Buying: The Garofalo Health Care S.p.A. (BIT:GHC) CEO & Director Just Bought €52k Worth Of Shares

Whilst it may not be a huge deal, we thought it was good to see that the Garofalo Health Care S.p.A. (BIT:GHC) CEO & Director, Maria Garofalo, recently bought €52k worth of stock, for €5.16 per share. That might not be a big purchase but it only increased their holding by 0.08%, and could be interpreted as a good sign.

See our latest analysis for Garofalo Health Care

The Last 12 Months Of Insider Transactions At Garofalo Health Care

Notably, that recent purchase by CEO & Director Maria Garofalo was not the only time they bought Garofalo Health Care shares this year. They previously made an even bigger purchase of €71k worth of shares at a price of €4.19 per share. That means that an insider was happy to buy shares at around the current price of €5.15. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Garofalo Health Care insider decided to buy shares at close to current prices. Maria Garofalo was the only individual insider to buy shares in the last twelve months.

Maria Garofalo bought a total of 110.00k shares over the year at an average price of €4.12. You can see a visual depiction of insider transactions (by 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!

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).

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Garofalo Health Care insiders own 17% of the company, worth about €72m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Garofalo Health Care Insider Transactions Indicate?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Garofalo Health Care insiders are well aligned, and that they may think the share price is too low. 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. Case in point: We've spotted 3 warning signs for Garofalo Health Care you should be aware of, and 2 of them don't sit too well with us.

But note: Garofalo Health Care 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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

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