China Regenerative Medicine International's Recent Gains Improve Losses On Insider Purchases Worth HK$16.0m

Insiders who bought HK$16.0m worth of China Regenerative Medicine International Limited (HKG:8158) stock in the last year have seen some of their losses recouped as the stock gained 13% last week. However, total losses seen by insiders are still HK$12m since the time of purchase.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for China Regenerative Medicine International

China Regenerative Medicine International Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by CEO, Executive Chairman & Compliance Officer Chuang Wang for HK$16m worth of shares, at about HK$0.85 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$0.20). 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. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Chuang Wang was the only individual insider to buy during 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!

China Regenerative Medicine International 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 Of China Regenerative Medicine International

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that China Regenerative Medicine International insiders own 25% of the company, worth about HK$15m. 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 Does This Data Suggest About China Regenerative Medicine International Insiders?

The fact that there have been no China Regenerative Medicine International insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in China Regenerative Medicine International and we see no evidence to suggest they are worried about the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 3 warning signs for China Regenerative Medicine International (1 shouldn't be ignored!) that we believe deserve your full attention.

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.

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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.