Raily Aesthetic Medicine International Holdings' Recent Gains Improve Losses On Insider Purchases Worth CN¥16.0m

Some of the losses seen by insiders who purchased CN¥16.0m worth of Raily Aesthetic Medicine International Holdings Limited (HKG:2135) shares over the past year were recovered after the stock increased by 14% over the past week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled CN¥2.8m since the time of purchase.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Raily Aesthetic Medicine International Holdings

In the last twelve months, the biggest single purchase by an insider was when Executive Chairman of the Board Haishu Fu bought HK$11m worth of shares at a price of HK$0.15 per share. That means that an insider was happy to buy shares at above the current price of HK$0.12. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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.

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!

See our latest analysis for Raily Aesthetic Medicine International Holdings

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 Of Raily Aesthetic Medicine International Holdings

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Raily Aesthetic Medicine International Holdings insiders own 66% of the company, worth about HK$45m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

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

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like Raily Aesthetic Medicine International Holdings insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Raily Aesthetic Medicine International Holdings. In terms of investment risks, we've identified 2 warning signs with Raily Aesthetic Medicine International Holdings and understanding them should be part of your investment process.

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 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.