Shareholders Can't Ignore CN¥4.6m Of Sales By MedSci Healthcare Holdings Insiders

Last week, MedSci Healthcare Holdings Limited's (HKG:2415) stock jumped 10%, but insiders who sold CN¥4.6m worth of stock in over the past year are likely to be in a better position. Holding on to stock would have meant their investment would be worth less now than it was at the time of sale. Thus selling at an average price of CN¥2.67, which is higher than the current price, may have been the best decision.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for MedSci Healthcare Holdings

The Last 12 Months Of Insider Transactions At MedSci Healthcare Holdings

The Founder & Executive Chairman of the Board, Fabao Zhang, made the biggest insider sale in the last 12 months. That single transaction was for HK$1.5m worth of shares at a price of HK$2.70 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (HK$0.85). So it may not shed much light on insider confidence at current levels.

Insiders in MedSci Healthcare Holdings didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Does MedSci Healthcare Holdings Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. MedSci Healthcare Holdings insiders own about HK$275m worth of shares (which is 60% 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.

What Might The Insider Transactions At MedSci Healthcare Holdings Tell Us?

The fact that there have been no MedSci Healthcare Holdings insider transactions recently certainly doesn't bother us. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the MedSci Healthcare Holdings insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing MedSci Healthcare Holdings. Every company has risks, and we've spotted 2 warning signs for MedSci Healthcare Holdings (of which 1 is a bit concerning!) you should know about.

But note: MedSci Healthcare 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.