Have Insiders Sold Aceso Life Science Group Limited (HKG:474) Shares Recently?

We wouldn't blame Aceso Life Science Group Limited (HKG:474) shareholders if they were a little worried about the fact that Shao Li, the Senior Consultant recently netted about HK$5.0m selling shares at an average price of HK$0.23. However, that sale only accounted for 0.6% of their holding, so arguably it doesn't say much about their conviction.

Check out our latest analysis for Aceso Life Science Group

Aceso Life Science Group Insider Transactions Over The Last Year

In fact, the recent sale by Senior Consultant Shao Li was not their only trade of Aceso Life Science Group shares this year. Earlier in the year, they spent HK$12m to buy shares at HK$0.39 per share. That means that an insider was happy to buy shares at above the current price of HK$0.24. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Shao Li was the only individual insider to buy shares in the last twelve months. Notably Shao Li was also the biggest seller.

Shao Li bought a total of 94.12m shares over the year at an average price of HK$0.32. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Aceso Life Science Group Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Aceso Life Science Group insiders own 52% of the company, currently worth about HK$881m based on the recent share price. 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 Aceso Life Science Group Insiders?

Unfortunately, there has been more insider selling of Aceso Life Science Group stock, than buying, in the last three months. But we take heart from prior transactions. And insider ownership remains quite considerable. So the recent selling doesn't worry us. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Aceso Life Science Group is showing 5 warning signs in our investment analysis, and 2 of those are concerning...

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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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