Whilst it may not be a huge deal, we thought it was good to see that the Dawnrays Pharmaceutical (Holdings) Limited (HKG:2348) Co-Founder & Executive Director, Yung Lai Hung, recently bought HK$263k worth of stock, for HK$1.24 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 34%.
Dawnrays Pharmaceutical (Holdings) Insider Transactions Over The Last Year
The CEO & Executive Director Shaojun Chen made the biggest insider purchase in the last 12 months. That single transaction was for HK$5.8m worth of shares at a price of HK$1.10 each. That implies that an insider found the current price of HK$1.25 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Dawnrays Pharmaceutical (Holdings) share holders is that insiders were buying at near the current price.
While Dawnrays Pharmaceutical (Holdings) insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, 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 growing companies that insiders are buying.
Insider Ownership of Dawnrays Pharmaceutical (Holdings)
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 14% of Dawnrays Pharmaceutical (Holdings) shares, worth about HK$246m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Dawnrays Pharmaceutical (Holdings) Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Dawnrays Pharmaceutical (Holdings). Looks promising! 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. Be aware that Dawnrays Pharmaceutical (Holdings) is showing 3 warning signs in our investment analysis, and 1 of those is a bit concerning...
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.
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Dawnrays Pharmaceutical (Holdings)
Dawnrays Pharmaceutical (Holdings) Limited, an investment holding company, develops, manufactures, and sells non-patented pharmaceutical medicines in Mainland China and internationally.
Excellent balance sheet with solid track record.