Zhengguo Hu Bought 113% More Shares In CStone Pharmaceuticals
CStone Pharmaceuticals (HKG:2616) shareholders (or potential shareholders) will be happy to see that the Non-Executive Director, Zhengguo Hu, recently bought a whopping HK$5.8m worth of stock, at a price of HK$5.75. That purchase boosted their holding by 113%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.
CStone Pharmaceuticals Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Non Executive Director, Kenneth Walton Hitchner, for HK$6.4m worth of shares, at about HK$12.75 per share. 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$5.60. So it is hard to draw any strong conclusion from it.
In the last twelve months insiders purchased 3.25m shares for HK$17m. But they sold 1.29m shares for HK$13m. In the last twelve months there was more buying than selling by CStone Pharmaceuticals insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Check out our latest analysis for CStone Pharmaceuticals
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Does CStone Pharmaceuticals Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 1.5% of CStone Pharmaceuticals shares, worth about HK$127m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About CStone Pharmaceuticals Insiders?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about CStone Pharmaceuticals. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CStone Pharmaceuticals. Every company has risks, and we've spotted 2 warning signs for CStone Pharmaceuticals you should know about.
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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