Insiders who bought Shanghai Bio-heart Biological Technology Co., Ltd. (HKG:2185) stock in the last 12 months were richly rewarded last week. The company's market value increased by HK$1.5b as a result of the stock's 9.8% gain over the same period. Put another way, the original CN¥551k acquisition is now worth CN¥1.9m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Shanghai Bio-heart Biological Technology

The Last 12 Months Of Insider Transactions At Shanghai Bio-heart Biological Technology

Over the last year, we can see that the biggest insider purchase was by insider Ching Hung Chau for HK$395k worth of shares, at about HK$19.74 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$69.90. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Ching Hung Chau purchased 26.50k shares over the year. The average price per share was HK$20.78. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership Of Shanghai Bio-heart Biological Technology

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From what we can see in our data, insiders own only about HK$1.9m worth of Shanghai Bio-heart Biological Technology shares. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. It's always possible we are missing something but from our data, it looks like insider ownership is minimal.

So What Does This Data Suggest About Shanghai Bio-heart Biological Technology Insiders?

It doesn't really mean much that no insider has traded Shanghai Bio-heart Biological Technology shares in the last quarter. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Shanghai Bio-heart Biological Technology stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Shanghai Bio-heart Biological Technology. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Shanghai Bio-heart Biological Technology.

But note: Shanghai Bio-heart Biological Technology 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, but not derivative transactions.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.