Executive Chairman of CSPC Pharmaceutical Group Picks Up 1.1% More Stock

Those following along with CSPC Pharmaceutical Group Limited (HKG:1093) will no doubt be intrigued by the recent purchase of shares by Dongchen Cai, Executive Chairman of the company, who spent a stonking HK$221m on stock at an average price of HK$7.38. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 1.1%.

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The Last 12 Months Of Insider Transactions At CSPC Pharmaceutical Group

Notably, that recent purchase by Dongchen Cai is the biggest insider purchase of CSPC Pharmaceutical Group shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is HK$8.04. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices. We note that Dongchen Cai was also the biggest seller.

In the last twelve months insiders purchased 90.85m shares for HK$663m. On the other hand they divested 39.28m shares, for HK$116m. In the last twelve months there was more buying than selling by CSPC Pharmaceutical Group insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for CSPC Pharmaceutical Group

CSPC Pharmaceutical Group is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of CSPC Pharmaceutical Group

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. CSPC Pharmaceutical Group insiders own about HK$23b worth of shares (which is 25% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

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

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about CSPC Pharmaceutical Group. Looks promising! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of CSPC Pharmaceutical Group.

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.