Have Insiders Sold Venus Medtech (Hangzhou) Inc. (HKG:2500) Shares Recently?

We wouldn't blame Venus Medtech (Hangzhou) Inc. (HKG:2500) shareholders if they were a little worried about the fact that Hou-Sen Lim, the COO, CTO & Executive Director recently netted about HK$193m selling shares at an average price of HK$82.71. That's a big disposal, and it decreased their holding size by 17%, which is notable but not too bad.

Check out our latest analysis for Venus Medtech (Hangzhou)

The Last 12 Months Of Insider Transactions At Venus Medtech (Hangzhou)

In fact, the recent sale by Hou-Sen Lim was the biggest sale of Venus Medtech (Hangzhou) shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of HK$81.60. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Hou-Sen Lim sold a total of 2.55m shares over the year at an average price of CN¥82.79. 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!

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Does Venus Medtech (Hangzhou) 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. Venus Medtech (Hangzhou) insiders own 27% of the company, currently worth about HK$9.0b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Venus Medtech (Hangzhou) Tell Us?

An insider hasn't bought Venus Medtech (Hangzhou) stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with Venus Medtech (Hangzhou) and understanding them should be part of your investment process.

Of course Venus Medtech (Hangzhou) may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.

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