InnoCare Pharma Insider Lowered Holding By 89% During Last Year

Insiders were net sellers of InnoCare Pharma Limited's (HKG:9969 ) stock during the past year. That is, insiders sold more stock than they bought.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At InnoCare Pharma

Over the last year, we can see that the biggest insider sale was by the insider, Kee Chan Pang, for HK$99m worth of shares, at about HK$11.21 per share. That means that an insider was selling shares at slightly below the current price (HK$14.25). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was 89% of Kee Chan Pang's holding. Kee Chan Pang was the only individual insider to sell shares in the last twelve months.

Kee Chan Pang sold a total of 10.31m shares over the year at an average price of CN¥12.00. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for InnoCare Pharma

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InnoCare Pharma Insiders Are Selling The Stock

The last three months saw significant insider selling at InnoCare Pharma. In total, insider Kee Chan Pang dumped HK$25m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Does InnoCare Pharma Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. InnoCare Pharma insiders own 21% of the company, currently worth about HK$5.9b based on the recent share price. 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 Does This Data Suggest About InnoCare Pharma Insiders?

An insider hasn't bought InnoCare Pharma stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 1 warning sign for InnoCare Pharma that deserve your attention before buying any shares.

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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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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.