Hopeful Week For Insiders Who Bought CN¥6.17m Of CStone Pharmaceuticals Stock

Some of the losses seen by insiders who purchased CN¥6.17m worth of CStone Pharmaceuticals (HKG:2616) shares over the past year were recovered after the stock increased by 21% over the past week. However, the purchase is proving to be an expensive wager as insiders are yet to get ahead of their losses which currently stand at CN¥3.4m since the time of purchase.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for CStone Pharmaceuticals

The Last 12 Months Of Insider Transactions At CStone Pharmaceuticals

In the last twelve months, the biggest single purchase by an insider was when CEO and President of R&D Jianxin Yang bought HK$1.1m worth of shares at a price of HK$2.48 per share. That means that an insider was happy to buy shares at above the current price of HK$1.09. Their view may have changed since then, but at least it shows they felt optimistic at the time. 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. Jianxin Yang was the only individual insider to buy during the last year.

Jianxin Yang bought 2.49m shares over the last 12 months at an average price of HK$2.47. 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!

CStone Pharmaceuticals is not the only stock that insiders are buying. 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 CStone Pharmaceuticals

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. Based on our data, CStone Pharmaceuticals insiders have about 1.5% of the stock, worth approximately HK$16m. We prefer to see high levels of insider ownership.

So What Does This Data Suggest About CStone Pharmaceuticals Insiders?

It doesn't really mean much that no insider has traded CStone Pharmaceuticals shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in CStone Pharmaceuticals and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 1 warning sign for CStone Pharmaceuticals and we suggest you have a look.

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 of direct interests only, but not derivative transactions or indirect interests.

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

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.