Hua Medicine (Shanghai) Ltd.'s (HKG:2552) recent HK$348m market cap decline means a loss of CN¥109k for insiders who bought this year - Simply Wall St

The caller 12% driblet successful Hua Medicine (Shanghai) Ltd.'s (HKG:2552) banal could travel arsenic a stroke to insiders who purchased CN¥3.1m worthy of banal astatine an mean bargain terms of CN¥2.74 implicit the past 12 months. Insiders acquisition with the anticipation of seeing their investments summation successful worth implicit time. However, owed to caller losses, their archetypal concern is present lone worthy CN¥3.0m, which is not great.

Although we don't deliberation shareholders should simply travel insider transactions, we bash deliberation it is perfectly logical to support tabs connected what insiders are doing.

See our latest investigation for Hua Medicine (Shanghai)

Hua Medicine (Shanghai) Insider Transactions Over The Last Year

Over the past year, we tin spot that the biggest insider acquisition was by Founder Li Chen for HK$2.9m worthy of shares, astatine astir HK$2.76 per share. That means that adjacent erstwhile the stock terms was higher than HK$2.64 (the caller price), an insider wanted to acquisition shares. Their presumption whitethorn person changed since then, but astatine slightest it shows they felt optimistic astatine the time. In our view, the terms an insider pays for shares is precise important. Generally speaking, it catches our oculus erstwhile an insider has purchased shares astatine supra existent prices, arsenic it suggests they believed the shares were worthy buying, adjacent astatine a higher price. Li Chen was the lone idiosyncratic insider to bargain during the past year.

Li Chen bought 1.12m shares implicit the past 12 months astatine an mean terms of HK$2.74. You tin spot a ocular depiction of insider transactions (by companies and individuals) implicit the past 12 months, below. If you privation to cognize precisely who sold, for however much, and when, simply click connected the graph below!

SEHK:2552 Insider Trading Volume November 23rd 2022

There are plentifulness of different companies that person insiders buying up shares. You astir apt bash not privation to miss this free list of increasing companies that insiders are buying.

Does Hua Medicine (Shanghai) Boast High Insider Ownership?

I similar to look astatine however galore shares insiders ain successful a company, to assistance pass my presumption of however aligned they are with insiders. A precocious insider ownership often makes institution enactment much mindful of shareholder interests. Insiders ain 4.9% of Hua Medicine (Shanghai) shares, worthy astir HK$126m. This level of insider ownership is bully but conscionable abbreviated of being peculiarly stand-out. It surely does suggest a tenable grade of alignment.

So What Does This Data Suggest About Hua Medicine (Shanghai) Insiders?

It is bully to spot the caller insider purchase. And the longer word insider transactions besides springiness america confidence. But we don't consciousness the aforesaid astir the information the institution is making losses. Once you origin successful the precocious insider ownership, it surely seems similar insiders are affirmative astir Hua Medicine (Shanghai). Nice! So these insider transactions tin assistance america physique a thesis astir the stock, but it's besides worthwhile knowing the risks facing this company. For instance, we've identified 2 informing signs for Hua Medicine (Shanghai) (1 makes america a spot uncomfortable) you should beryllium alert of.

But note: Hua Medicine (Shanghai) whitethorn not beryllium the champion banal to buy. So instrumentality a peek astatine this free list of absorbing companies with precocious ROE and debased debt.

For the purposes of this article, insiders are those individuals who study their transactions to the applicable regulatory body. We presently relationship for unfastened marketplace transactions and backstage dispositions, but not derivative transactions.