Viewing insider transactions for China Medical System Holdings Limited's (HKG:867 ) over the last year, we see that insiders were net buyers. This means that a larger number of shares were purchased by insiders in relation to shares sold.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for China Medical System Holdings
The Last 12 Months Of Insider Transactions At China Medical System Holdings
In the last twelve months, the biggest single purchase by an insider was when Founder Kong Lam bought HK$7.3m worth of shares at a price of HK$7.32 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$8.46. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Kong Lam bought 30.00m shares over the last 12 months at an average price of HK$7.14. 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!
China Medical System Holdings is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Does China Medical System Holdings Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. 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 Medical System Holdings insiders own about HK$11b worth of shares (which is 52% 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.
So What Does This Data Suggest About China Medical System Holdings Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like China Medical System Holdings insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing China Medical System Holdings. At Simply Wall St, we found 2 warning signs for China Medical System Holdings that deserve your attention before buying any shares.
But note: China Medical System 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.