Insiders At Shandong Weigao Group Medical Polymer Sold CN¥8.2m In Stock, Alluding To Potential Weakness

In the last year, many Shandong Weigao Group Medical Polymer Company Limited (HKG:1066) insiders sold a substantial stake in the company which may have sparked shareholders' attention. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Shandong Weigao Group Medical Polymer

The Last 12 Months Of Insider Transactions At Shandong Weigao Group Medical Polymer

The Executive Chairman of the Board & Compliance Officer, Jing Long, made the biggest insider sale in the last 12 months. That single transaction was for HK$5.8m worth of shares at a price of HK$12.04 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$7.01. So it may not tell us anything about how insiders feel about the current share price.

In the last year Shandong Weigao Group Medical Polymer insiders didn't buy any company stock. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does Shandong Weigao Group Medical Polymer Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Insiders own 0.3% of Shandong Weigao Group Medical Polymer shares, worth about HK$82m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Shandong Weigao Group Medical Polymer Insiders?

The fact that there have been no Shandong Weigao Group Medical Polymer insider transactions recently certainly doesn't bother us. Still, the insider transactions at Shandong Weigao Group Medical Polymer in the last 12 months are not very heartening. But it's good to see that insiders own shares in the company. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

Of course Shandong Weigao Group Medical Polymer 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.