We wouldn't blame China Biotech Services Holdings Limited (HKG:8037) shareholders if they were a little worried about the fact that Xiaolin Liu, the Executive Chairman & Compliance Officer recently netted about HK$5.0m selling shares at an average price of HK$0.40. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 2.3%.
Check out our latest analysis for China Biotech Services Holdings
The Last 12 Months Of Insider Transactions At China Biotech Services Holdings
In fact, the recent sale by Xiaolin Liu was the biggest sale of China Biotech Services Holdings shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of HK$0.39. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Does China Biotech Services Holdings Boast High Insider Ownership?
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. China Biotech Services Holdings insiders own 65% of the company, currently worth about HK$244m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At China Biotech Services Holdings Tell Us?
An insider hasn't bought China Biotech Services Holdings stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing China Biotech Services Holdings. To help with this, we've discovered 3 warning signs (1 is concerning!) that you ought to be aware of before buying any shares in China Biotech Services Holdings.
But note: China Biotech Services Holdings 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com