Anyone interested in Clarity Medical Group Holding Limited (HKG:1406) should probably be aware that the Executive Director, Wai Ip Tse, recently divested HK$2.0m worth of shares in the company, at an average price of HK$0.64 each. On the bright side, that sale was only 2.9% of their holding, so we doubt it's very meaningful, on its own.
See our latest analysis for Clarity Medical Group Holding
Clarity Medical Group Holding Insider Transactions Over The Last Year
The insider Chi Heng Cheng made the biggest insider purchase in the last 12 months. That single transaction was for HK$13m worth of shares at a price of HK$1.04 each. That means that even when the share price was higher than HK$0.61 (the recent price), an insider wanted to purchase shares. 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 always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Over the last year, we can see that insiders have bought 12.95m shares worth HK$14m. But they sold 3.13m shares for HK$2.0m. In the last twelve months there was more buying than selling by Clarity Medical Group Holding insiders. 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!
Clarity Medical Group Holding is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Clarity Medical Group Holding Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Clarity Medical Group Holding insiders own 25% of the company, worth about HK$81m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Clarity Medical Group Holding Insiders?
An insider sold Clarity Medical Group Holding shares recently, but they didn't buy any. On the other hand, the insider transactions over the last year are encouraging. It's good to see insiders are shareholders. So we're not overly bothered by recent selling. 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. At Simply Wall St, we've found that Clarity Medical Group Holding has 4 warning signs (1 is potentially serious!) that deserve your attention before going any further with your analysis.
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 of direct interests only, but not derivative transactions or indirect interests.
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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.