This CSPC Pharmaceutical Group Insider Increased Their Holding In The Last Year

From what we can see, insiders were net buyers in CSPC Pharmaceutical Group Limited's (HKG:1093 ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.

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.

View our latest analysis for CSPC Pharmaceutical Group

CSPC Pharmaceutical Group Insider Transactions Over The Last Year

The Executive Chairman Dongchen Cai made the biggest insider purchase in the last 12 months. That single transaction was for HK$13m worth of shares at a price of HK$7.69 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$6.49). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Dongchen Cai was the only individual insider to buy shares in the last twelve months.

Dongchen Cai purchased 4.25m shares over the year. The average price per share was HK$7.59. 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!

CSPC Pharmaceutical Group 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.

Does CSPC Pharmaceutical Group Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. CSPC Pharmaceutical Group insiders own about HK$18b worth of shares (which is 24% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At CSPC Pharmaceutical Group Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like CSPC Pharmaceutical Group insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CSPC Pharmaceutical Group. 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.