Even though Jacobio Pharmaceuticals Group Co., Ltd. (HKG:1167) stock gained 19% last week, insiders who sold CN¥55m worth of stock over the past year are probably better off. Holding on to stock would have meant their investment would be worth less now than it was at the time of sale. Thus selling at an average price of CN¥6.12, which is higher than the current price, may have been the best decision.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Jacobio Pharmaceuticals Group

Jacobio Pharmaceuticals Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Shaojing Hu, sold HK$30m worth of shares at a price of HK$6.00 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$5.25. So it is hard to draw any strong conclusion from it.

Over the last year, we can see that insiders have bought 223.80k shares worth HK$2.3m. But insiders sold 9.00m shares worth HK$55m. In total, Jacobio Pharmaceuticals Group insiders sold more than they bought over the last year. They sold for an average price of about CN¥6.12. Insider selling doesn't make us excited to buy. But the selling was at much higher prices than the current share price (HK$5.25), so it probably doesn't tell us a lot about the value on offer today. 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!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Jacobio Pharmaceuticals Group Insiders Are Selling The Stock

Over the last three months, we've seen significant insider selling at Jacobio Pharmaceuticals Group. Specifically, insiders ditched HK$55m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership Of Jacobio Pharmaceuticals Group

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. Jacobio Pharmaceuticals Group insiders own 26% of the company, currently worth about HK$1.0b 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.

So What Do The Jacobio Pharmaceuticals Group Insider Transactions Indicate?

Insiders sold Jacobio Pharmaceuticals Group shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. It is good to see high insider ownership, but the insider selling leaves us cautious. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 3 warning signs for Jacobio Pharmaceuticals Group you should be aware of, and 1 of them is a bit unpleasant.

But note: Jacobio Pharmaceuticals 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, but not derivative transactions.

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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.