The Executive Director & President of the Proprietary Chinese Medicine Business of JBM (Healthcare) Limited (HKG:2161), Ka Wing Chu, Just Sold 98% Of Their Holding

By
Simply Wall St
Published
January 07, 2022
SEHK:2161
Source: Shutterstock

Investors may wish to note that the Executive Director & President of the Proprietary Chinese Medicine Business of JBM (Healthcare) Limited, Ka Wing Chu, recently netted HK$121k from selling stock, receiving an average price of HK$1.08. That might not be a huge sum but it was 98% of their personal holding, so we find it a little discouraging.

View our latest analysis for JBM (Healthcare)

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

Notably, that recent sale by Ka Wing Chu is the biggest insider sale of JBM (Healthcare) shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of HK$0.99. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. 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).

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!

insider-trading-volume
SEHK:2161 Insider Trading Volume January 7th 2022

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 of JBM (Healthcare)

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that JBM (Healthcare) insiders own 4.5% of the company, worth about HK$40m. However, it's possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

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

An insider sold JBM (Healthcare) shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! 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. Our analysis shows 4 warning signs for JBM (Healthcare) (1 is a bit concerning!) and we strongly recommend you look at them before investing.

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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