Last week, SinoMab BioScience Limited's (HKG:3681) stock jumped 11%, but insiders who sold CN¥4.3m worth of stock in over the past year are likely to be in a better position. Selling at an average price of CN¥1.80, which is higher than the current price, may have been the wisest decision for these insiders as their investment would have been worth less now than when they sold.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for SinoMab BioScience
SinoMab BioScience Insider Transactions Over The Last Year
The President of China & Executive Director, Shanchun Wang, made the biggest insider sale in the last 12 months. That single transaction was for HK$4.3m worth of shares at a price of HK$1.80 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of HK$1.34. So it is hard to draw any strong conclusion from it. Shanchun Wang was the only individual insider to sell over the last year.
The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like SinoMab BioScience better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Insiders At SinoMab BioScience Have Sold Stock Recently
The last quarter saw substantial insider selling of SinoMab BioScience shares. In total, President of China & Executive Director Shanchun Wang dumped HK$4.3m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that SinoMab BioScience insiders own 32% of the company, worth about HK$472m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At SinoMab BioScience Tell Us?
An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To that end, you should learn about the 5 warning signs we've spotted with SinoMab BioScience (including 3 which are a bit unpleasant).
Of course SinoMab BioScience may not be the best stock to buy. So you may wish to see this free collection of high quality 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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