Did Vincent Medical Holdings Limited (HKG:1612) Insiders Buy Up More Shares?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares in Vincent Medical Holdings Limited (HKG:1612).

What Is Insider Selling?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.

Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

Check out our latest analysis for Vincent Medical Holdings

The Last 12 Months Of Insider Transactions At Vincent Medical Holdings

The Independent Non-Executive Director, Kai Leung Yung, made the biggest insider sale in the last 12 months. That single transaction was for HK$1.8m worth of shares at a price of HK$1.52 each. That means that even when the share price was below the current price of HK$1.70, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 100% of Kai Leung Yung's stake. The only individual insider seller over the last year was Kai Leung Yung.

In the last twelve months insiders purchased 1.58m shares for HK$2.3m. But they sold 1.20m shares for HK$1.8m. Overall, Vincent Medical Holdings insiders were net buyers during the last year. Their average price was about HK$1.49. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price. 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!

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.

Insiders at Vincent Medical Holdings Have Sold Stock Recently

We've seen more insider selling than insider buying at Vincent Medical Holdings recently. In that time, Independent Non-Executive Director Kai Leung Yung dumped HK$1.8m worth of shares. Meanwhile CEO, GM & Executive Director Ki Cheung To bought HK$69k worth. Generally this level of net selling might be considered a bit bearish.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 5.6% of Vincent Medical Holdings shares, worth about HK$62m, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Vincent Medical Holdings Insiders?

Unfortunately, there has been more insider selling of Vincent Medical Holdings stock, than buying, in the last three months. In contrast, they appear keener if you look at the last twelve months. It's good to see insiders are shareholders. So we're not overly bothered by recent selling. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 1 warning sign for Vincent Medical Holdings you should be aware of.

But note: Vincent Medical Holdings 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, 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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