An Insider At InnoCare Pharma Lowered Their Holding Recently

From what we can see, insiders were net sellers in InnoCare Pharma Limited's (HKG:9969 ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for InnoCare Pharma

InnoCare Pharma Insider Transactions Over The Last Year

The insider, Chan Pang Kee, made the biggest insider sale in the last 12 months. That single transaction was for HK$1.5m worth of shares at a price of HK$4.91 each. That means that an insider was selling shares at slightly below the current price (HK$5.01). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 0.2% of Chan Pang Kee's stake. Chan Pang Kee was the only individual insider to sell shares in the last twelve months.

Chan Pang Kee sold a total of 366.00k shares over the year at an average price of CN¥5.14. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insiders At InnoCare Pharma Have Sold Stock Recently

The last three months saw significant insider selling at InnoCare Pharma. In total, insider Chan Pang Kee dumped HK$1.9m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Does InnoCare Pharma Boast High Insider Ownership?

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. InnoCare Pharma insiders own about HK$2.3b worth of shares (which is 23% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The InnoCare Pharma Insider Transactions Indicate?

An insider sold InnoCare Pharma shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with InnoCare Pharma and understanding these should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 of direct interests only, but not derivative transactions or indirect interests.

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