Zhong Ji Longevity Science Group Insider Lowered Holding By 100% During Last Year

From what we can see, insiders were net sellers in Zhong Ji Longevity Science Group Limited's (HKG:767 ) 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 do think it is perfectly logical to keep tabs on what insiders are doing.

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Zhong Ji Longevity Science Group Insider Transactions Over The Last Year

The insider, Jianyong Wang, made the biggest insider sale in the last 12 months. That single transaction was for HK$23m worth of shares at a price of HK$0.50 each. That means that even when the share price was slightly below the current price of HK$0.51, an insider wanted to cash in some shares. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 100% of Jianyong Wang's stake. Jianyong Wang was the only individual insider to sell shares in the last twelve months.

The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Zhong Ji Longevity Science Group

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Zhong Ji Longevity Science Group Insiders Are Selling The Stock

There was substantially more insider selling, than buying, of Zhong Ji Longevity Science Group shares over the last three months. In total, insider Jianyong Wang sold HK$23m worth of shares in that time. On the other hand we note Executive Chairman of the Board Li Yan bought HK$23m worth of shares , as previously mentioned . Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the shares are not cheap.

Insider Ownership Of Zhong Ji Longevity Science Group

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. Zhong Ji Longevity Science Group insiders own 41% of the company, currently worth about HK$133m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Zhong Ji Longevity Science Group Tell Us?

Unfortunately, there has been more insider selling of Zhong Ji Longevity Science Group stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Zhong Ji Longevity Science Group is showing 4 warning signs in our investment analysis, and 1 of those is potentially serious...

But note: Zhong Ji Longevity Science Group 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.