The Chairman & CEO of Zylox-Tonbridge Medical Technology Co., Ltd. (HKG:2190), Zhong Zhao, Just Bought 321% More Shares

Investors who take an interest in Zylox-Tonbridge Medical Technology Co., Ltd. (HKG:2190) should definitely note that the Chairman & CEO, Zhong Zhao, recently paid HK$26.26 per share to buy HK$1.8m worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 321%, potentially signalling some real optimism.

Check out our latest analysis for Zylox-Tonbridge Medical Technology

Zylox-Tonbridge Medical Technology Insider Transactions Over The Last Year

In fact, the recent purchase by Zhong Zhao was the biggest purchase of Zylox-Tonbridge Medical Technology shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$26.00). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Zhong Zhao.

Zhong Zhao purchased 88.50k shares over the year. The average price per share was HK$26.29. 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!

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.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Zylox-Tonbridge Medical Technology insiders own about HK$1.8b worth of shares (which is 21% 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 Does This Data Suggest About Zylox-Tonbridge Medical Technology Insiders?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Zylox-Tonbridge Medical Technology. One for the watchlist, at least! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 2 warning signs for Zylox-Tonbridge Medical Technology that deserve your attention before buying any shares.

But note: Zylox-Tonbridge Medical Technology 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. 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.