This Modern Chinese Medicine Group Insider Reduced Their Stake By 11%

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.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Modern Chinese Medicine Group

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

Over the last year, we can see that the biggest insider sale was by the Executive Chairman, Xinlei Sun, for HK$18m worth of shares, at about HK$0.38 per share. So we know that an insider sold shares at around the present share price of HK$0.35. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive). The only individual insider seller over the last year was Xinlei Sun.

The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Modern Chinese Medicine Group better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Modern Chinese Medicine Group Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Modern Chinese Medicine Group insiders own 67% of the company, currently worth about HK$143m 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 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. While we feel good about high insider ownership of Modern Chinese Medicine Group, we can't say the same about the selling of shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 3 warning signs we've spotted with Modern Chinese Medicine Group (including 1 which is a bit unpleasant).

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com