Don't Ignore The Fact That This Insider Just Sold Some Shares In China Regenerative Medicine International Limited (HKG:8158)

We'd be surprised if China Regenerative Medicine International Limited (HKG:8158) shareholders haven't noticed that an insider, Xiaokai Mao, recently sold HK$3.4m worth of stock at HK$0.34 per share. However, the silver lining is that the sale only reduced their total holding by 3.6%, so we're hesitant to read anything much into it, on its own.

See our latest analysis for China Regenerative Medicine International

China Regenerative Medicine International Insider Transactions Over The Last Year

The insider Yawei Wu made the biggest insider purchase in the last 12 months. That single transaction was for HK$35m worth of shares at a price of HK$0.25 each. We do like to see buying, but this purchase was made at well below the current price of HK$0.48. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Happily, we note that in the last year insiders paid HK$139m for 607.76m shares. But insiders sold 290.00m shares worth HK$73m. In total, China Regenerative Medicine International insiders bought more than they sold over the last year. 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!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of China Regenerative Medicine International

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that China Regenerative Medicine International insiders own 31% of the company, worth about HK$381m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The China Regenerative Medicine International Insider Transactions Indicate?

An insider sold China Regenerative Medicine International shares recently, but they didn't buy any. On the other hand, the insider transactions over the last year are encouraging. We are also comforted by the high levels of insider ownership. So we're not too bothered by recent selling. 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 5 warning signs for China Regenerative Medicine International (3 are potentially serious!) 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, but not derivative transactions.

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