Wai Chun Bio-Technology Insiders Up HK$56m On HK$80.4m Investment

Insiders who bought Wai Chun Bio-Technology Limited (HKG:660) stock lover the last 12 months are probably not as affected by last week’s 18% loss. After taking the recent loss into consideration, the HK$80.4m worth of stock they bought is now worth HK$136.2m, indicating that their investment yielded a positive return.

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 Wai Chun Bio-Technology

Over the last year, we can see that the biggest insider purchase was by insider Ching Kui Lam for HK$73m worth of shares, at about HK$0.44 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$0.70. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Over the last year, we can see that insiders have bought 194.54m shares worth HK$80m. But they sold 24.34m shares for HK$7.6m. In the last twelve months there was more buying than selling by Wai Chun Bio-Technology insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Wai Chun Bio-Technology

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Wai Chun Bio-Technology Insiders Bought Stock Recently

At Wai Chun Bio-Technology,over the last quarter, we have observed quite a lot more insider buying than insider selling. In fact, two insiders bought HK$80m worth of shares. On the other hand, insiders netted HK$7.6m by selling. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.

Insider Ownership Of Wai Chun Bio-Technology

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. Wai Chun Bio-Technology insiders own about HK$223m worth of shares (which is 86% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Wai Chun Bio-Technology Tell Us?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Wai Chun Bio-Technology. Looks promising! 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 Wai Chun Bio-Technology is showing 5 warning signs in our investment analysis, and 4 of those don't sit too well with us...

Of course Wai Chun Bio-Technology 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.