We'd be surprised if Clarity Medical Group Holding Limited (HKG:1406) shareholders haven't noticed that the Executive Director, Wai Ip Tse, recently sold HK$2.0m worth of stock at HK$0.61 per share. On the bright side, that sale was only 3.1% 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
In the last twelve months, the biggest single purchase by an insider was when insider Chi Heng Cheng bought HK$13m worth of shares at a price of HK$1.04 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$0.56). 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 12.95m shares for HK$14m. On the other hand they divested 6.40m shares, for HK$4.0m. Overall, Clarity Medical Group Holding insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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
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. Clarity Medical Group Holding insiders own about HK$70m worth of shares. That equates to 24% 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 Do The Clarity Medical Group Holding Insider Transactions Indicate?
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. We like that insiders own a fair amount of the company. So the recent selling doesn't worry us too much. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 4 warning signs for Clarity Medical Group Holding (1 doesn't sit too well with us!) and we strongly recommend you look at these before investing.
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.