Those following along with CSPC Pharmaceutical Group Limited (HKG:1093) will no doubt be intrigued by the recent purchase of shares by Dongchen Cai, Executive Chairman of the company, who spent a stonking HK$32m on stock at an average price of HK$4.78. While that only increased their holding size by 0.2%, it is still a big swing by our standards.
CSPC Pharmaceutical Group Insider Transactions Over The Last Year
In fact, the recent purchase by Dongchen Cai was the biggest purchase of CSPC Pharmaceutical Group shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of HK$5.27 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the CSPC Pharmaceutical Group insiders decided to buy shares at close to current prices.
CSPC Pharmaceutical Group insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
See our latest analysis for CSPC Pharmaceutical Group
CSPC Pharmaceutical Group 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 CSPC Pharmaceutical Group 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. I reckon it's a good sign if insiders own a significant number of shares in the company. CSPC Pharmaceutical Group insiders own about HK$15b worth of shares (which is 25% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The CSPC Pharmaceutical Group Insider Transactions Indicate?
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 CSPC Pharmaceutical Group. That's what I like to see! 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. At Simply Wall St, we found 1 warning sign for CSPC Pharmaceutical Group that deserve your attention before buying any shares.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.