Beijing Chunlizhengda Medical Instruments Co., Ltd. (HKG:1858) shareholders (or potential shareholders) will be happy to see that the Executive Director, Chunbao Shi, recently bought a whopping HK$6.0m worth of stock, at a price of HK$7.63. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 46%.
View our latest analysis for Beijing Chunlizhengda Medical Instruments
The Last 12 Months Of Insider Transactions At Beijing Chunlizhengda Medical Instruments
In fact, the recent purchase by Chunbao Shi was the biggest purchase of Beijing Chunlizhengda Medical Instruments shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than HK$6.70 (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. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Chunbao Shi was the only individual insider to buy shares in the last twelve months.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Beijing Chunlizhengda Medical Instruments is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does Beijing Chunlizhengda Medical Instruments Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Beijing Chunlizhengda Medical Instruments insiders own about HK$2.4b worth of shares (which is 58% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Beijing Chunlizhengda Medical Instruments Tell Us?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Beijing Chunlizhengda Medical Instruments. Looks promising! 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. While conducting our analysis, we found that Beijing Chunlizhengda Medical Instruments has 1 warning sign and it would be unwise to ignore this.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.