Trade Alert: The Vice Chairlady & President Of Consun Pharmaceutical Group Limited (HKG:1681), Qian Li, Has Just Spent CN¥2.2m Buying A Few More Shares

By
Simply Wall St
Published
November 23, 2021
SEHK:1681
Source: Shutterstock

Potential Consun Pharmaceutical Group Limited (HKG:1681) shareholders may wish to note that the Vice Chairlady & President, Qian Li, recently bought HK$2.2m worth of stock, paying HK$3.65 for each share. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.

Check out our latest analysis for Consun Pharmaceutical Group

Consun Pharmaceutical Group Insider Transactions Over The Last Year

In fact, the recent purchase by Qian Li was the biggest purchase of Consun Pharmaceutical Group shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$3.50). 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. The only individual insider to buy over the last year was Qian Li.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
SEHK:1681 Insider Trading Volume November 23rd 2021

Consun 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.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Consun Pharmaceutical Group insiders own 58% of the company, worth about HK$1.6b. 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 Does This Data Suggest About Consun Pharmaceutical Group Insiders?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Consun Pharmaceutical Group. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Consun Pharmaceutical Group has 2 warning signs and it would be unwise to ignore them.

But note: Consun Pharmaceutical Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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, but not derivative transactions.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.