Insiders Could Have Profited By Holding onto TOT BIOPHARM International Shares Despite 11% Drop

TOT BIOPHARM International Company Limited's (HKG:1875) stock price has dropped 11% in the previous week, but insiders who sold CN¥4.1m in stock over the past year have had less luck. Given that the average selling price of CN¥2.50 is still lower than the current share price, insiders would probably have been better off keeping their shares.

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 TOT BIOPHARM International

The Last 12 Months Of Insider Transactions At TOT BIOPHARM International

In the last twelve months, the biggest single sale by an insider was when the Non-Executive Vice Chairman of the Board, Chun-Ying Yeh-Huang, sold HK$4.1m worth of shares at a price of HK$2.50 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$1.81. So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Chun-Ying Yeh-Huang.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like TOT BIOPHARM International better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does TOT BIOPHARM International Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own HK$9.9m worth of TOT BIOPHARM International stock, about 0.7% of the company. We consider this fairly low insider ownership.

So What Do The TOT BIOPHARM International Insider Transactions Indicate?

The fact that there have been no TOT BIOPHARM International insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by TOT BIOPHARM International insiders. And usually insiders own more stock in the company, according to our data. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for TOT BIOPHARM International.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 of direct interests only, but not derivative transactions or indirect interests.

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

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.