Executive Chairman of CSPC Pharmaceutical Group Dongchen Cai Buys More Stock

CSPC Pharmaceutical Group Limited (HKG:1093) shareholders (or potential shareholders) will be happy to see that the Executive Chairman, Dongchen Cai, recently bought a whopping HK$58m worth of stock, at a price of HK$9.64. While that only increased their holding size by 0.2%, it is still a big swing by our standards.

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CSPC Pharmaceutical Group Insider Transactions Over The Last Year

In fact, the recent purchase by Executive Chairman Dongchen Cai was not their only trade of CSPC Pharmaceutical Group shares this year. Earlier in the year, they sold shares at a price ofHK$2.95 per share in a -HK$116m transaction. That means that an insider was selling shares at slightly below the current price (HK$9.70). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 1.4% of Dongchen Cai's holding.

Happily, we note that in the last year insiders paid HK$192m for 30.91m shares. But insiders sold 39.28m shares worth HK$116m. In the last twelve months there was more buying than selling by CSPC Pharmaceutical Group insiders. The average buy price was around HK$6.21. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for CSPC Pharmaceutical Group

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of CSPC Pharmaceutical Group

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. CSPC Pharmaceutical Group insiders own 25% of the company, currently worth about HK$27b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About CSPC Pharmaceutical Group Insiders?

The stark truth for CSPC Pharmaceutical Group is that there has been more insider selling than insider buying in the last three months. In contrast, they appear keener if you look at the last twelve months. And insider ownership remains quite considerable. So the recent selling doesn't worry us. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CSPC Pharmaceutical Group. You'd be interested to know, that we found 2 warning signs for CSPC Pharmaceutical Group and we suggest you have a look.

Of course CSPC Pharmaceutical Group 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.