Have Insiders Sold WuXi Biologics (Cayman) Shares Recently?

Some WuXi Biologics (Cayman) Inc. (HKG:2269) shareholders may be a little concerned to see that the CEO & Executive Director, Zhisheng Chen, recently sold a substantial HK$6.6m worth of stock at a price of HK$11.45 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 4.0%.

View our latest analysis for WuXi Biologics (Cayman)

WuXi Biologics (Cayman) Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Honorary President of Global Biologics Development, Weichang Zhou, for HK$76m worth of shares, at about HK$50.85 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (HK$11.68). So it may not shed much light on insider confidence at current levels.

Happily, we note that in the last year insiders paid HK$3.8m for 125.70k shares. But they sold 2.98m shares for HK$122m. Over the last year we saw more insider selling of WuXi Biologics (Cayman) shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership

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 WuXi Biologics (Cayman) insiders own 0.4% of the company, worth about HK$176m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At WuXi Biologics (Cayman) Tell Us?

Insiders haven't bought WuXi Biologics (Cayman) stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of WuXi Biologics (Cayman).

But note: WuXi Biologics (Cayman) may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

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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.

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