CARsgen Therapeutics Holdings Insiders CN¥2.9m Short Of Breakeven On Stock Purchase

Some of the losses seen by insiders who purchased CN¥12.7m worth of CARsgen Therapeutics Holdings Limited (HKG:2171) shares over the past year were recovered after the stock increased by 11% over the past week. The purchase, however, has proven to be a pricey bet, with losses currently totalling CN¥2.9m.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for CARsgen Therapeutics Holdings

The Last 12 Months Of Insider Transactions At CARsgen Therapeutics Holdings

The Non-Executive Director Huaqing Guo made the biggest insider purchase in the last 12 months. That single transaction was for HK$4.8m worth of shares at a price of HK$5.93 each. That means that an insider was happy to buy shares at above the current price of HK$4.73. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Huaqing Guo was the only individual insider to buy during the last year.

Huaqing Guo bought a total of 2.08m shares over the year at an average price of HK$6.14. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of CARsgen Therapeutics Holdings

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. Insiders own 5.0% of CARsgen Therapeutics Holdings shares, worth about HK$134m. 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 Do The CARsgen Therapeutics Holdings Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like CARsgen Therapeutics Holdings insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. When we did our research, we found 3 warning signs for CARsgen Therapeutics Holdings (1 is concerning!) that we believe deserve your full attention.

Of course CARsgen Therapeutics Holdings 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.