11% Of This Modern Chinese Medicine Group Insider's Holdings Were Sold

From what we can see, insiders were net sellers in Modern Chinese Medicine Group Co., Ltd.'s (HKG:1643 ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased 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.

See our latest analysis for Modern Chinese Medicine Group

The Last 12 Months Of Insider Transactions At Modern Chinese Medicine Group

The Executive Chairman, Xinlei Sun, made the biggest insider sale in the last 12 months. That single transaction was for HK$18m worth of shares at a price of HK$0.38 each. That means that an insider was selling shares at around the current price of HK$0.36. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. Xinlei Sun was the only individual insider to sell over the last year.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership Of Modern Chinese Medicine 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. It's great to see that Modern Chinese Medicine Group insiders own 67% of the company, worth about HK$145m. 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 Do The Modern Chinese Medicine Group Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Modern Chinese Medicine Group shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Modern Chinese Medicine Group insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Modern Chinese Medicine Group. Be aware that Modern Chinese Medicine Group is showing 5 warning signs in our investment analysis, and 2 of those can't be ignored...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.