Insider Stock Buying Reaches CN¥54m On Jinxin Fertility Group \

Multiple insiders secured a larger position in Jinxin Fertility Group Limited (HKG:1951) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Jinxin Fertility Group

Jinxin Fertility Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Co-CEO & Executive Director Yang Dong for HK$7.8m worth of shares, at about HK$5.22 per share. That means that even when the share price was higher than HK$4.62 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Jinxin Fertility Group insiders may have bought shares in the last year, but they didn't sell any. Their average price was about HK$4.36. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Jinxin Fertility Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Jinxin Fertility Group Insiders Bought Stock Recently

It's good to see that Jinxin Fertility Group insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought HK$28m worth of shares. That shows some optimism about the company's future.

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Jinxin Fertility Group insiders own about HK$121m worth of shares. That equates to 1.0% of the company. 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 Jinxin Fertility Group Insider Transactions Indicate?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Jinxin Fertility Group. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Jinxin Fertility Group has 3 warning signs and it would be unwise to ignore these.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.

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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.