This WuXi AppTec Insider Reduced Their Stake By 15%

Viewing insider transactions for WuXi AppTec Co., Ltd.'s (SHSE:603259 ) over the last year, we see that insiders were net sellers. This means that a larger number of shares were sold by insiders in relation to shares purchased.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for WuXi AppTec

WuXi AppTec Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Co-Founder, Ge Li, for CN¥1.8b worth of shares, at about CN¥67.27 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (CN¥43.71). So it may not tell us anything about how insiders feel about the current share price. Ge Li was the only individual insider to sell shares in the last twelve months.

Ge Li ditched 32.49m shares over the year. The average price per share was CN¥69.25. 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 are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

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. WuXi AppTec insiders own about CN¥6.5b worth of shares (which is 5.2% 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 Does This Data Suggest About WuXi AppTec Insiders?

It doesn't really mean much that no insider has traded WuXi AppTec shares in the last quarter. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of WuXi AppTec insider transactions don't fill us with confidence. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of WuXi AppTec.

But note: WuXi AppTec 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.