Stock Analysis

Have JW (Cayman) Therapeutics Insiders Been Selling Stock?

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We'd be surprised if JW (Cayman) Therapeutics Co. Ltd (HKG:2126) shareholders haven't noticed that the Non-Executive Director, Cheng Liu, recently sold HK$1.4m worth of stock at HK$5.72 per share. On the bright side, that sale was only 3.6% of their holding, so we doubt it's very meaningful, on its own.

Check out our latest analysis for JW (Cayman) Therapeutics

JW (Cayman) Therapeutics Insider Transactions Over The Last Year

Notably, that recent sale by Non-Executive Director Cheng Liu was not the only time they sold JW (Cayman) Therapeutics shares this year. Earlier in the year, they fetched HK$5.64 per share in a -HK$2.0m sale. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of HK$5.71. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 4.9% of Cheng Liu's holding.

Cheng Liu divested 593.00k shares over the last 12 months at an average price of CN¥5.67. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

SEHK:2126 Insider Trading Volume January 29th 2023

I will like JW (Cayman) Therapeutics better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership Of JW (Cayman) Therapeutics

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 7.0% of JW (Cayman) Therapeutics shares, worth about HK$159m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About JW (Cayman) Therapeutics Insiders?

An insider sold JW (Cayman) Therapeutics shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 3 warning signs for JW (Cayman) Therapeutics you should know about.

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, but not derivative transactions.

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