Xiaohong Zhao Bought 8.6% More Shares In AK Medical Holdings
Investors who take an interest in AK Medical Holdings Limited (HKG:1789) should definitely note that the VP & Executive Director, Xiaohong Zhao, recently paid HK$5.10 per share to buy HK$1.0m worth of the stock. Although the purchase only increased their holding by 8.6%, it is still a solid purchase in our view.
The Last 12 Months Of Insider Transactions At AK Medical Holdings
Notably, that recent purchase by Xiaohong Zhao is the biggest insider purchase of AK Medical Holdings shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is HK$5.44. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for AK Medical Holdings share holders is that an insider was buying at near the current price. Xiaohong Zhao was the only individual insider to buy shares in the last twelve months.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Check out our latest analysis for AK Medical Holdings
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of AK Medical Holdings
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. AK Medical Holdings insiders own 52% of the company, currently worth about HK$3.1b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The AK Medical Holdings 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 AK Medical Holdings. Looks promising! Therefore, you should definitely take a look at this FREE report showing analyst forecasts for AK Medical Holdings.
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.