Have Clarity Medical Group Holding Insiders Been Selling Stock?

We wouldn't blame Clarity Medical Group Holding Limited (HKG:1406) shareholders if they were a little worried about the fact that Wai Ip Tse, the Executive Director recently netted about HK$5.6m selling shares at an average price of HK$0.55. That sale reduced their total holding by 10% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for Clarity Medical Group Holding

The Last 12 Months Of Insider Transactions At Clarity Medical Group Holding

The insider Chi Heng Cheng made the biggest insider purchase in the last 12 months. That single transaction was for HK$13m worth of shares at a price of HK$1.04 each. That means that an insider was happy to buy shares at above the current price of HK$0.58. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months insiders purchased 12.95m shares for HK$14m. But insiders sold 18.11m shares worth HK$10m. In the last twelve months there was more buying than selling by Clarity Medical Group Holding insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership Of Clarity Medical Group Holding

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 24% of Clarity Medical Group Holding shares, worth about HK$72m. 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 Do The Clarity Medical Group Holding Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. In contrast, they appear keener if you look at the last twelve months. We like that insiders own a fair amount of the company. So the recent selling doesn't worry us too much. 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. Be aware that Clarity Medical Group Holding is showing 4 warning signs in our investment analysis, and 1 of those shouldn't be ignored...

But note: Clarity Medical Group Holding 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.

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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.