Insiders Find Solace Selling CN¥12m In Stock With Huakang Biomedical Holdings' Price Down 17%

Insiders seem to have made the most of their holdings by selling CN¥12m worth of Huakang Biomedical Holdings Company Limited (HKG:8622) stock at an average sell price of CN¥0.08 during the past year. After the stock price dropped 17% last week, the company's market value declined by HK$10m, but insiders were able to mitigate their losses.

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.

View our latest analysis for Huakang Biomedical Holdings

The Last 12 Months Of Insider Transactions At Huakang Biomedical Holdings

In the last twelve months, the biggest single sale by an insider was when the Vice Chairman, Yim Yang Chang, sold HK$3.2m worth of shares at a price of HK$0.049 per share. That means that even when the share price was below the current price of HK$0.12, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 100% of Yim Yang Chang's stake.

In the last year Huakang Biomedical Holdings insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Insiders At Huakang Biomedical Holdings Have Sold Stock Recently

The last three months saw significant insider selling at Huakang Biomedical Holdings. Specifically, insiders ditched HK$12m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership Of Huakang Biomedical Holdings

For a common shareholder, it is worth checking how many shares are held by company 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. Insiders own 34% of Huakang Biomedical Holdings shares, worth about HK$17m. 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 Huakang Biomedical Holdings Tell Us?

Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Huakang Biomedical Holdings. Be aware that Huakang Biomedical Holdings is showing 6 warning signs in our investment analysis, and 3 of those are a bit concerning...

Of course Huakang Biomedical Holdings 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.

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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.