Joyzyme Group Insiders Enjoying CN¥57m Appreciation On CN¥32.7m Investment

Joyzyme Group Limited (HKG:8622) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 15%, resulting in a HK$23m rise in the company's market capitalisation, translating to a gain of 174% on their initial investment. In other words, the original CN¥32.7m purchase is now worth CN¥89.5m.

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.

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The Last 12 Months Of Insider Transactions At Joyzyme Group

In the last twelve months, the biggest single purchase by an insider was when Co-Chairman Xunyong Zhou bought HK$17m worth of shares at a price of HK$0.13 per share. We do like to see buying, but this purchase was made at well below the current price of HK$0.34. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Xunyong Zhou bought 259.52m shares over the last 12 months at an average price of HK$0.13. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Joyzyme Group

Joyzyme Group is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Joyzyme Group insiders own 53% of the company, worth about HK$95m. 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 Joyzyme Group Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like Joyzyme Group insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 2 warning signs for Joyzyme Group you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.