Insider Purchases Worth HK$16.5m See Losses As Zhong Ji Longevity Science Group Market Value Drops To HK$99m

Insiders who bought HK$16.5m worth of Zhong Ji Longevity Science Group Limited's (HKG:767) stock at an average buy price of HK$0.21 over the last year may be disappointed by the recent 19% decrease in the stock. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth HK$14.0m which is not ideal.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Zhong Ji Longevity Science Group

The Last 12 Months Of Insider Transactions At Zhong Ji Longevity Science Group

The insider Jianyong Wang made the biggest insider purchase in the last 12 months. That single transaction was for HK$10.0m worth of shares at a price of HK$0.21 each. That means that an insider was happy to buy shares at above the current price of HK$0.18. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Zhong Ji Longevity Science Group insiders may have bought shares in the last year, but they didn't sell any. 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!

Zhong Ji Longevity Science Group is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Zhong Ji Longevity Science Group Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Zhong Ji Longevity Science Group insiders own 50% of the company, currently worth about HK$49m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Zhong Ji Longevity Science Group Insider Transactions Indicate?

The fact that there have been no Zhong Ji Longevity Science Group insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Zhong Ji Longevity Science Group insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Zhong Ji Longevity Science Group. While conducting our analysis, we found that Zhong Ji Longevity Science Group has 3 warning signs and it would be unwise to ignore them.

Of course Zhong Ji Longevity Science Group may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

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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.