Insiders Could Have Profited By Holding onto New Ray Medicine International Holding Shares Despite 11% Drop

New Ray Medicine International Holding Limited's (HKG:6108) value has fallen 11% in the last week, but insiders who sold HK$8.0m worth of stock over the last year have had less success. Given that the average selling price of HK$0.10 is still lower than the current share price, insiders would probably have been better off keeping their shares.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for New Ray Medicine International Holding

The Last 12 Months Of Insider Transactions At New Ray Medicine International Holding

In the last twelve months, the biggest single sale by an insider was when the insider, Shenglei Qian, sold HK$4.1m worth of shares at a price of HK$0.10 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (HK$0.042). So it may not tell us anything about how insiders feel about the current share price. Shenglei Qian was the only individual insider to sell shares in the last twelve months.

Shenglei Qian sold a total of 80.00m shares over the year at an average price of HK$0.10. 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!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership Of New Ray Medicine International Holding

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 20% of New Ray Medicine International Holding shares, worth about HK$14m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At New Ray Medicine International Holding Tell Us?

It doesn't really mean much that no insider has traded New Ray Medicine International Holding shares in the last quarter. Still, the insider transactions at New Ray Medicine International Holding in the last 12 months are not very heartening. The modest level of insider ownership is, at least, some comfort. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 3 warning signs for New Ray Medicine International Holding you should know about.

Of course New Ray Medicine International Holding 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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.