Independent Non-Executive Director of WuXi Biologics (Cayman) Kenneth Walton Hitchner Buys 97% More Shares

Potential WuXi Biologics (Cayman) Inc. (HKG:2269) shareholders may wish to note that the Independent Non-Executive Director, Kenneth Walton Hitchner, recently bought HK$3.0m worth of stock, paying HK$30.30 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 97%.

See our latest analysis for WuXi Biologics (Cayman)

The Last 12 Months Of Insider Transactions At WuXi Biologics (Cayman)

In the last twelve months, the biggest single sale by an insider was when the President of Global Biologics Development & Operations, Weichang Zhou, sold HK$76m worth of shares at a price of HK$50.85 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$29.40. So it is hard to draw any strong conclusion from it.

In the last twelve months insiders purchased 125.70k shares for HK$3.8m. But insiders sold 2.60m shares worth HK$128m. In total, WuXi Biologics (Cayman) insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Does WuXi Biologics (Cayman) Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 0.3% of WuXi Biologics (Cayman) shares, worth about HK$399m. 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 WuXi Biologics (Cayman) Tell Us?

The stark truth for WuXi Biologics (Cayman) is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that WuXi Biologics (Cayman) is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. 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.