This Insider Has Just Sold Shares In Clarity Medical Group Holding

We'd be surprised if Clarity Medical Group Holding Limited (HKG:1406) shareholders haven't noticed that the Executive Director, Wai Ip Tse, recently sold HK$2.0m worth of stock at HK$0.64 per share. However, the silver lining is that the sale only reduced their total holding by 2.9%, so we're hesitant to read anything much into it, on its own.

View our latest analysis for Clarity Medical Group Holding

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

In the last twelve months, the biggest single purchase by an insider was when insider Chi Heng Cheng bought HK$13m worth of shares at a price of HK$1.04 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$0.61). 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. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months insiders purchased 12.95m shares for HK$14m. But insiders sold 3.13m shares worth HK$2.0m. 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

Clarity Medical Group Holding is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Clarity Medical Group Holding Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 25% of Clarity Medical Group Holding shares, worth about HK$81m. 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 Clarity Medical Group Holding Insiders?

An insider sold Clarity Medical Group Holding shares recently, but they didn't buy any. In contrast, they appear keener if you look at the last twelve months. It's good to see insiders are shareholders. So we're happy enough to look past some selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Clarity Medical Group Holding. Case in point: We've spotted 4 warning signs for Clarity Medical Group Holding you should be aware of, and 1 of them shouldn't be ignored.

Of course Clarity Medical Group Holding 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.