Bullish JBM (Healthcare) Insiders Rewarded As Their Investment Rises To HK$47.2m

JBM (Healthcare) Limited (HKG:2161) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 15%, resulting in a HK$108m rise in the company's market capitalisation, translating to a gain of 100% on their initial investment. As a result, their original purchase of HK$23.6m worth of stock is now worth HK$47.2m.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for JBM (Healthcare)

The Last 12 Months Of Insider Transactions At JBM (Healthcare)

Over the last year, we can see that the biggest insider purchase was by Non-Executive Chairman of the Board Kwong Yip Sum for HK$24m worth of shares, at about HK$0.50 per share. Even though the purchase was made at a significantly lower price than the recent price (HK$1.00), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

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

JBM (Healthcare) is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership Of JBM (Healthcare)

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that JBM (Healthcare) insiders own 24% of the company, worth about HK$199m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At JBM (Healthcare) Tell Us?

It doesn't really mean much that no insider has traded JBM (Healthcare) shares in the last quarter. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, JBM (Healthcare) insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing JBM (Healthcare). While conducting our analysis, we found that JBM (Healthcare) has 1 warning sign and it would be unwise to ignore this.

Of course JBM (Healthcare) may not be the best stock to buy. So you may wish to see this free collection of high quality 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.