CEO Holding Majority Share, what does it entail?
Post# of 24964
Company CEO of Regencell Bioscience Holding (NASDAQ: RGC), Mr Yat-Gai Au has been buying back shares over the year. (over 68.34k shares with average price of $USD 26). The company stock price dropped in last month’s lowest of $USD 28.60 becoming its new support line.
Analyst data recorded that Mr Au’s recent purchase of shares was the biggest made as an insider individual.
That means that an insider was happy to buy shares at above the current price. It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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. Yat-Gai Au was the only individual insider to buy shares in the last twelve months.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests.
Regencell Bioscience Holdings insiders own 81% of the company, currently worth about US$260m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
[https://finance.yahoo.com/news/founder-regencell-bioscience-holdings-limited-101443485.html](https://finance.yahoo.com/news/founder-regencell-bioscience-holdings-limited-101443485.html)