Despite the fact that CARsgen Therapeutics Holdings Limited's (HKG:2171) value has dropped 23% in the last week insiders who sold CN¥14m worth of stock in the past 12 months have had less success. Given that the average selling price of CN¥15.92 is still lower than the current share price, insiders would probably have been better off keeping their shares.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for CARsgen Therapeutics Holdings
CARsgen Therapeutics Holdings Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the insider, Zhi Yang, for HK$14m worth of shares, at about HK$15.92 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. The good news is that this large sale was at well above current price of HK$8.73. So it is hard to draw any strong conclusion from it. Zhi Yang was the only individual insider to sell over 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!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does CARsgen Therapeutics Holdings Boast High 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. CARsgen Therapeutics Holdings insiders own about HK$284m worth of shares. That equates to 5.7% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At CARsgen Therapeutics Holdings Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of CARsgen Therapeutics Holdings insider transactions don't fill us with confidence. 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. Our analysis shows 2 warning signs for CARsgen Therapeutics Holdings (1 is a bit concerning!) and we strongly recommend you look at them before investing.
But note: CARsgen Therapeutics Holdings 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 of direct interests only, but not derivative transactions or indirect interests.
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