Jacobio Pharmaceuticals Group Executive Chairman & CEO Acquires 8.7% More Stock

Those following along with Jacobio Pharmaceuticals Group Co., Ltd. (HKG:1167) will no doubt be intrigued by the recent purchase of shares by Yinxiang Wang, Executive Chairman & CEO of the company, who spent a stonking HK$84m on stock at an average price of HK$8.80. 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 8.7%.

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Jacobio Pharmaceuticals Group Insider Transactions Over The Last Year

Notably, that recent purchase by Yinxiang Wang is the biggest insider purchase of Jacobio Pharmaceuticals 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$9.24. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Jacobio Pharmaceuticals Group insider decided to buy shares at close to current prices. Yinxiang Wang was the only individual insider to buy shares in the last twelve months.

Yinxiang Wang bought 11.06m shares over the last 12 months at an average price of HK$8.56. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Jacobio Pharmaceuticals Group

Jacobio Pharmaceuticals 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 Jacobio Pharmaceuticals 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. Jacobio Pharmaceuticals Group insiders own 20% of the company, currently worth about HK$1.4b based on the recent share price. 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 Do The Jacobio Pharmaceuticals Group Insider Transactions Indicate?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Jacobio Pharmaceuticals Group. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for Jacobio Pharmaceuticals Group that deserve your attention before buying any shares.

Of course Jacobio Pharmaceuticals 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.