Consun Pharmaceutical Group Insiders Added CN¥51.2m Of Stock To Their Holdings

Quite a few insiders have dramatically grown their holdings in Consun Pharmaceutical Group Limited (HKG:1681) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

The Last 12 Months Of Insider Transactions At Consun Pharmaceutical Group

Over the last year, we can see that the biggest insider sale was by the Chief Scientist & Executive Director, Quan Zhu, for HK$8.4m worth of shares, at about HK$6.56 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of HK$9.90. 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. It is worth noting that this sale was 100% of Quan Zhu's holding. The only individual insider seller over the last year was Quan Zhu.

Happily, we note that in the last year insiders paid HK$51m for 9.40m shares. But they sold 1.29m shares for HK$8.4m. Overall, Consun Pharmaceutical Group insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Consun Pharmaceutical Group

Consun Pharmaceutical Group is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Consun Pharmaceutical Group Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Consun Pharmaceutical Group insiders own 41% of the company, worth about HK$3.4b. 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 Does This Data Suggest About Consun Pharmaceutical Group Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Consun Pharmaceutical Group insiders think the business has merit. 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 1 warning sign with Consun Pharmaceutical Group and understanding it should be part of your investment process.

Of course Consun Pharmaceutical Group may not be the best stock to buy. So you may wish to see this free collection of high quality 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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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.