Insiders who bought CN¥34m worth of Jinxin Fertility Group Limited's (HKG:1951) stock at an average buy price of CN¥4.96 over the last year may be disappointed by the recent 4.7% decrease in the stock. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth CN¥32m which is not ideal.

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 Jinxin Fertility Group

The Last 12 Months Of Insider Transactions At Jinxin Fertility Group

The CO-CEO & Executive Director Rong Lyu made the biggest insider purchase in the last 12 months. That single transaction was for HK$15m worth of shares at a price of HK$4.56 each. That means that an insider was happy to buy shares at around the current price of HK$4.70. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Jinxin Fertility Group insiders decided to buy shares at close to current prices.

In the last twelve months Jinxin Fertility Group insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Our data indicates that Jinxin Fertility Group insiders own about HK$40m worth of shares (which is 0.3% of the company). But they may have an indirect interest through a corporate structure that we haven't picked up on. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Jinxin Fertility Group Tell Us?

The fact that there have been no Jinxin Fertility Group insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Jinxin Fertility Group insiders are doubting the company, and they do own shares. Of course, the future is what matters most. So if you are interested in Jinxin Fertility Group, you should check out this free report on analyst forecasts for the company.

But note: Jinxin Fertility 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.