Potential Shanghai Fosun Pharmaceutical (Group) Co., Ltd. (SHSE:600196) shareholders may wish to note that the Executive Chairman, Yifang Wu, recently bought CN¥887k worth of stock, paying CN¥35.50 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 3.5%.

See our latest analysis for Shanghai Fosun Pharmaceutical (Group)

The Last 12 Months Of Insider Transactions At Shanghai Fosun Pharmaceutical (Group)

Notably, that recent purchase by Yifang Wu is the biggest insider purchase of Shanghai Fosun Pharmaceutical (Group) shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CN¥33.04). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Yifang Wu was the only individual insider to buy during the last year.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Shanghai Fosun Pharmaceutical (Group) insiders own about CN¥73m worth of shares. That equates to 0.09% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Shanghai Fosun Pharmaceutical (Group) Insiders?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Shanghai Fosun Pharmaceutical (Group) insiders are well aligned, and that they may think the share price is too low. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 4 warning signs for Shanghai Fosun Pharmaceutical (Group) and we suggest you have a look.

Of course Shanghai Fosun Pharmaceutical (Group) 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, 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.