Have RemeGen Insiders Been Selling Stock?

Anyone interested in RemeGen Co., Ltd. (HKG:9995) should probably be aware that the Non-Executive Director, Liqiang Wang, recently divested HK$3.4m worth of shares in the company, at an average price of HK$16.80 each. On the bright side, that sale was only 0.8% of their holding, so we doubt it's very meaningful, on its own.

Check out our latest analysis for RemeGen

RemeGen Insider Transactions Over The Last Year

Notably, that recent sale by Liqiang Wang is the biggest insider sale of RemeGen shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of HK$20.20. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 0.8% of Liqiang Wang's stake.

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!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. It's great to see that RemeGen insiders own 16% of the company, worth about HK$2.8b. 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 RemeGen Insiders?

An insider sold RemeGen shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of 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. Our analysis shows 3 warning signs for RemeGen (1 is a bit unpleasant!) and we strongly recommend you look at these before investing.

But note: RemeGen may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 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.