Trade Alert: The CEO & Executive Chairman Of China Regenerative Medicine International Limited (HKG:8158), Chuang Wang, Has Just Spent HK$55m Buying 428% More Shares

Those following along with China Regenerative Medicine International Limited (HKG:8158) will no doubt be intrigued by the recent purchase of shares by Chuang Wang, CEO & Executive Chairman of the company, who spent a stonking HK$55m on stock at an average price of HK$0.51. That increased their holding by a full 428%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.

Check out our latest analysis for China Regenerative Medicine International

The Last 12 Months Of Insider Transactions At China Regenerative Medicine International

In fact, the recent purchase by Chuang Wang was the biggest purchase of China Regenerative Medicine International shares made by an insider individual in the last twelve months, according to our records. We do like to see buying, but this purchase was made at well below the current price of HK$0.68. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In the last twelve months insiders purchased 667.50m shares for HK$183m. But insiders sold 305.68m shares worth HK$81m. In total, China Regenerative Medicine International insiders bought more than they sold over the last year. Their average price was about HK$0.27. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. The chart below shows insider transactions (by companies and individuals) over the last year. 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 insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that China Regenerative Medicine International insiders own 30% of the company, worth about HK$444m. 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?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about China Regenerative Medicine International. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 4 warning signs for China Regenerative Medicine International (3 make us uncomfortable) you should be aware of.

Of course China Regenerative Medicine International 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, but not derivative transactions.

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