Possible Turnaround For Raily Aesthetic Medicine International Holdings Insiders, Still Down CN¥2.7m

Insiders who bought CN¥16.0m worth of Raily Aesthetic Medicine International Holdings Limited (HKG:2135) stock in the last year recovered part of their losses as the stock rose by 21% last week. However, total losses seen by insiders are still CN¥2.7m since the time of purchase.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Raily Aesthetic Medicine International Holdings

Raily Aesthetic Medicine International Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Executive Chairman of the Board Haishu Fu for HK$11m worth of shares, at about HK$0.15 per share. That means that an insider was happy to buy shares at above the current price of HK$0.12. 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

While Raily Aesthetic Medicine International Holdings insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Raily Aesthetic Medicine International Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Raily Aesthetic Medicine International Holdings insiders own about HK$45m worth of shares (which is 66% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Raily Aesthetic Medicine International Holdings Insider Transactions Indicate?

The fact that there have been no Raily Aesthetic Medicine International Holdings insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Raily Aesthetic Medicine International Holdings insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Raily Aesthetic Medicine International Holdings. Our analysis shows 3 warning signs for Raily Aesthetic Medicine International Holdings (2 are significant!) and we strongly recommend you look at these before investing.

But note: Raily Aesthetic Medicine International 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 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.