Some Kintor Pharmaceutical Limited (HKG:9939) shareholders may be a little concerned to see that insider Chuangxing Guo recently sold a substantial HK$60m worth of stock at a price of HK$19.93 per share. However, that sale only accounted for 7.0% of their holding, so arguably it doesn't say much about their conviction.

View our latest analysis for Kintor Pharmaceutical

Kintor Pharmaceutical Insider Transactions Over The Last Year

The Founder Youzhi Tong made the biggest insider purchase in the last 12 months. That single transaction was for HK$1.2b worth of shares at a price of HK$64.50 each. That means that even when the share price was higher than HK$23.10 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months insiders purchased 18.32m shares for HK$1.2b. But insiders sold 3.00m shares worth HK$60m. In total, Kintor Pharmaceutical insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Kintor Pharmaceutical is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership

Many investors like to check how much of a company is owned by 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. Kintor Pharmaceutical insiders own about HK$2.2b worth of shares (which is 24% 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.

What Might The Insider Transactions At Kintor Pharmaceutical Tell Us?

An insider sold stock recently, but they haven't been buying. In contrast, they appear keener if you look at the last twelve months. On top of that, insiders own a significant portion of the company. So the recent selling doesn't worry us. 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 3 warning signs for Kintor Pharmaceutical and we suggest you have a look.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.