Stock Analysis

Kwing Tong Lam Is The Independent Non-Executive Director of Jacobson Pharma Corporation Limited (HKG:2633) And They Just Picked Up 28% More Shares

SEHK:2633
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Whilst it may not be a huge deal, we thought it was good to see that the Jacobson Pharma Corporation Limited (HKG:2633) Independent Non-Executive Director, Kwing Tong Lam, recently bought HK$144k worth of stock, for HK$1.11 per share. That purchase might not be huge but it did increase their holding by 28%.

See our latest analysis for Jacobson Pharma

Jacobson Pharma Insider Transactions Over The Last Year

Notably, that recent purchase by Kwing Tong Lam is the biggest insider purchase of Jacobson Pharma shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of HK$1.04. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Kwing Tong Lam was the only individual insider to buy shares in the last twelve months.

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!

insider-trading-volume
SEHK:2633 Insider Trading Volume February 3rd 2021

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 Jacobson Pharma

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Jacobson Pharma insiders own about HK$1.2b worth of shares (which is 61% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Jacobson Pharma Tell Us?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Jacobson Pharma. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for Jacobson Pharma you should be aware of.

But note: Jacobson Pharma 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, but not derivative transactions.

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