Stock Analysis

One AIM Vaccine Insider Raised Stake By 27% In Previous Year

Published
SEHK:6660

From what we can see, insiders were net buyers in AIM Vaccine Co., Ltd.'s (HKG:6660 ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for AIM Vaccine

The Last 12 Months Of Insider Transactions At AIM Vaccine

In the last twelve months, the biggest single purchase by an insider was when Executive Chairman & CEO Yan Zhou bought HK$1.4m worth of shares at a price of HK$6.65 per share. That means that even when the share price was higher than HK$6.33 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for 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. Yan Zhou was the only individual insider to buy during the last year.

Yan Zhou purchased 1.33m shares over the year. The average price per share was HK$7.86. 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!

SEHK:6660 Insider Trading Volume August 9th 2024

AIM Vaccine is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. AIM Vaccine insiders own 28% of the company, currently worth about HK$2.2b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The AIM Vaccine Insider Transactions Indicate?

It doesn't really mean much that no insider has traded AIM Vaccine shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like AIM Vaccine insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 2 warning signs with AIM Vaccine and understanding these should be part of your investment process.

Of course AIM Vaccine may not be the best stock to buy. So you may wish to see this free collection of high quality 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 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.