HUTCHMED (China) Insider Lowered Holding By 51% During Last Year

From what we can see, insiders were net sellers in HUTCHMED (China) Limited's (LON:HCM ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

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 HUTCHMED (China)

The Last 12 Months Of Insider Transactions At HUTCHMED (China)

Over the last year, we can see that the biggest insider sale was by the CFO & Executive Director, Chig Fung Cheng, for UK£3.7m worth of shares, at about UK£2.87 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 UK£2.55. So it may not tell us anything about how insiders feel about the current share price. Chig Fung Cheng was the only individual insider to sell shares in the last twelve months.

Chig Fung Cheng sold a total of 2.60m shares over the year at an average price of US$2.89. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like HUTCHMED (China) better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does HUTCHMED (China) Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that HUTCHMED (China) insiders own 1.1% of the company, worth about UK£25m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At HUTCHMED (China) Tell Us?

The fact that there have been no HUTCHMED (China) insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by HUTCHMED (China) insiders. But it's good to see that insiders own shares in the company. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for HUTCHMED (China).

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.

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.