Bullish Asymchem Laboratories (Tianjin) Insiders Loaded Up On CN¥6.66m Of Stock

In the last year, multiple insiders have substantially increased their holdings of Asymchem Laboratories (Tianjin) Co., Ltd. (SZSE:002821) stock, indicating that insiders' optimism about the company's prospects has increased.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Asymchem Laboratories (Tianjin)

The Last 12 Months Of Insider Transactions At Asymchem Laboratories (Tianjin)

The CFO, COO Da Zhang made the biggest insider purchase in the last 12 months. That single transaction was for CN¥4.3m worth of shares at a price of CN¥58.39 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CN¥75.67. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months Asymchem Laboratories (Tianjin) insiders were buying shares, but not selling. They paid about CN¥65.96 on average. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. 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!

Asymchem Laboratories (Tianjin) is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Asymchem Laboratories (Tianjin) Insiders Bought Stock Recently

There was some insider buying at Asymchem Laboratories (Tianjin) over the last quarter. Non-Executive Director Ting Zhang shelled out CN¥304k for shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.

Insider Ownership Of Asymchem Laboratories (Tianjin)

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Asymchem Laboratories (Tianjin) insiders own about CN¥1.1b worth of shares (which is 4.4% 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.

What Might The Insider Transactions At Asymchem Laboratories (Tianjin) Tell Us?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Asymchem Laboratories (Tianjin) insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! 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 Asymchem Laboratories (Tianjin) has 2 warning signs and it would be unwise to ignore these.

But note: Asymchem Laboratories (Tianjin) 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.