The Non-Executive Director of Kintor Pharmaceutical Limited (HKG:9939), Gang Lu, Just Bought 240% More Shares

Those following along with Kintor Pharmaceutical Limited (HKG:9939) will no doubt be intrigued by the recent purchase of shares by Gang Lu, Non-Executive Director of the company, who spent a stonking HK$4.3m on stock at an average price of HK$71.76. That purchase boosted their holding by 240%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

View our latest analysis for Kintor Pharmaceutical

Kintor Pharmaceutical Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Chairman of the Board & CEO Youzhi Tong for HK$1.2b worth of shares, at about HK$64.50 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$74.80. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Over the last year, we can see that insiders have bought 18.32m shares worth HK$1.2b. But they sold 4.20m shares for HK$134m. Overall, Kintor Pharmaceutical insiders were net buyers during the last year. 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!

Kintor Pharmaceutical is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of Kintor Pharmaceutical

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Kintor Pharmaceutical insiders own 31% of the company, worth about HK$9.1b. 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 Does This Data Suggest About Kintor Pharmaceutical Insiders?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Kintor Pharmaceutical. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Kintor Pharmaceutical. Case in point: We've spotted 3 warning signs for Kintor Pharmaceutical you should be aware of, and 1 of them is potentially serious.

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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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.
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