Possible Bearish Signals With Joinn Laboratories(China)Co.Ltd Insiders Disposing Stock

Over the past year, many Joinn Laboratories(China)Co.,Ltd. (SHSE:603127) insiders sold a significant stake in the company which may have piqued investors' interest. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

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.

See our latest analysis for Joinn Laboratories(China)Co.Ltd

The Last 12 Months Of Insider Transactions At Joinn Laboratories(China)Co.Ltd

In the last twelve months, the biggest single sale by an insider was when the Co-Founder & Vice Chairman, Conglin Zuo, sold CN¥26m worth of shares at a price of CN¥26.49 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 CN¥17.37. So it may not shed much light on insider confidence at current levels.

In the last year Joinn Laboratories(China)Co.Ltd insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of Joinn Laboratories(China)Co.Ltd

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Joinn Laboratories(China)Co.Ltd insiders own about CN¥4.7b worth of shares (which is 40% 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 Joinn Laboratories(China)Co.Ltd Insider Transactions Indicate?

The fact that there have been no Joinn Laboratories(China)Co.Ltd insider transactions recently certainly doesn't bother us. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Joinn Laboratories(China)Co.Ltd insider transactions don't fill us with confidence. 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. While conducting our analysis, we found that Joinn Laboratories(China)Co.Ltd has 3 warning signs and it would be unwise to ignore these.

But note: Joinn Laboratories(China)Co.Ltd 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.