Chairman & CEO of Aidigong Maternal & Child Health Wai Kuen Cheung Buys More Stock

Potential Aidigong Maternal & Child Health Limited (HKG:286) shareholders may wish to note that the Chairman & CEO, Wai Kuen Cheung, recently bought HK$1.4m worth of stock, paying HK$0.30 for each share. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.

View our latest analysis for Aidigong Maternal & Child Health

The Last 12 Months Of Insider Transactions At Aidigong Maternal & Child Health

Notably, that recent purchase by Chairman & CEO Wai Kuen Cheung was not the only time they traded Aidigong Maternal & Child Health shares this year. They previously made a sale of -HK$50m worth of shares at a price of HK$0.25 per share. That means that even when the share price was below the current price of HK$0.32, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 24% of Wai Kuen Cheung's holding.

In the last twelve months insiders purchased 330.01m shares for HK$84m. On the other hand they divested 320.20m shares, for HK$82m. In total, Aidigong Maternal & Child Health insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Aidigong Maternal & Child Health is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Aidigong Maternal & Child Health

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. Aidigong Maternal & Child Health insiders own about HK$573m worth of shares (which is 40% 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 Aidigong Maternal & Child Health Tell Us?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Aidigong Maternal & Child Health insiders are well aligned, and quite possibly think the share price is too low. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 1 warning sign for Aidigong Maternal & Child Health you should know about.

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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