This Insider Has Just Sold Shares In Kintor Pharmaceutical Limited (HKG:9939)

We wouldn't blame Kintor Pharmaceutical Limited (HKG:9939) shareholders if they were a little worried about the fact that Chuangxing Guo, a company insider, recently netted about HK$60m selling shares at an average price of HK$19.93. However, that sale only accounted for 7.0% of their holding, so arguably it doesn't say much about their conviction.

See our latest analysis for Kintor Pharmaceutical

Kintor Pharmaceutical Insider Transactions Over The Last Year

The Founder Youzhi Tong made the biggest insider purchase in the last 12 months. That single transaction was for HK$1.2b worth of shares at a price of HK$64.50 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$23.10). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Happily, we note that in the last year insiders paid HK$1.2b for 18.32m shares. But insiders sold 3.00m shares worth HK$60m. In total, Kintor Pharmaceutical insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does Kintor Pharmaceutical Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Kintor Pharmaceutical insiders own about HK$2.2b worth of shares (which is 24% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Kintor Pharmaceutical Insider Transactions Indicate?

An insider hasn't bought Kintor Pharmaceutical stock in the last three months, but there was some selling. In contrast, they appear keener if you look at the last twelve months. And insider ownership remains quite considerable. So the recent selling doesn't worry us. While we like knowing 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. At Simply Wall St, we found 3 warning signs for Kintor Pharmaceutical that deserve your attention before buying any shares.

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.