Insiders Re-Evaluate Their CN¥27.9m Stock Purchase As Beijing Airdoc Technology Falls To HK$1.3b

The recent price decline of 14% in Beijing Airdoc Technology Co., Ltd.'s (HKG:2251) stock may have disappointed insiders who bought CN¥27.9m worth of shares at an average price of CN¥14.48 in the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth CN¥24.4m, which is not what they expected.

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.

Check out our latest analysis for Beijing Airdoc Technology

Beijing Airdoc Technology Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Tomasz Mialkos for HK$4.6m worth of shares, at about HK$13.99 per share. That means that even when the share price was higher than HK$12.68 (the recent price), an insider wanted to purchase shares. 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. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Tomasz Mialkos was the only individual insider to buy during the last year.

Tomasz Mialkos bought 1.93m shares over the last 12 months at an average price of HK$14.48. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Beijing Airdoc Technology is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Beijing Airdoc Technology Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Beijing Airdoc Technology insiders own 28% of the company, worth about HK$367m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Beijing Airdoc Technology Insiders?

The recent insider purchase is heartening. 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 Beijing Airdoc Technology. Looks promising! Of course, the future is what matters most. So if you are interested in Beijing Airdoc Technology, you should check out this free report on analyst forecasts for the company.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

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