Potential Zhongzhi Pharmaceutical Holdings Limited (HKG:3737) shareholders may wish to note that the Chairman, Zhi Tian Lai, recently bought HK$3.4m worth of stock, paying HK$0.95 for each share. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.

Check out our latest analysis for Zhongzhi Pharmaceutical Holdings

Zhongzhi Pharmaceutical Holdings Insider Transactions Over The Last Year

Notably, that recent purchase by Zhi Tian Lai is the biggest insider purchase of Zhongzhi Pharmaceutical Holdings shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of HK$1.02. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Zhongzhi Pharmaceutical Holdings share holders is that insiders were buying at near the current price.

In the last twelve months Zhongzhi Pharmaceutical Holdings insiders were buying shares, but not selling. 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 Zhongzhi Pharmaceutical Holdings

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Zhongzhi Pharmaceutical Holdings insiders own about HK$538m worth of shares (which is 61% of the company). 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 Zhongzhi Pharmaceutical Holdings Insider Transactions Indicate?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Zhongzhi Pharmaceutical Holdings. Looks promising! 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. You'd be interested to know, that we found 4 warning signs for Zhongzhi Pharmaceutical Holdings and we suggest you have a look.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.