Some Aidigong Maternal & Child Health Limited (HKG:286) shareholders may be a little concerned to see that the Chairman & CEO, Wai Kuen Cheung, recently sold a substantial HK$8.4m worth of stock at a price of HK$0.052 per share. That's a big disposal, and it decreased their holding size by 30%, which is notable but not too bad.
See our latest analysis for Aidigong Maternal & Child Health
Aidigong Maternal & Child Health Insider Transactions Over The Last Year
The insider Kar Lung Lee made the biggest insider purchase in the last 12 months. That single transaction was for HK$50m worth of shares at a price of HK$0.25 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$0.083). 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Happily, we note that in the last year insiders paid HK$59m for 230.01m shares. But they sold 275.39m shares for HK$20m. In total, Aidigong Maternal & Child Health insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of Aidigong Maternal & Child Health
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. Aidigong Maternal & Child Health insiders own about HK$149m worth of shares (which is 41% 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 Aidigong Maternal & Child Health Insider Transactions Indicate?
Unfortunately, there has been more insider selling of Aidigong Maternal & Child Health stock, than buying, in the last three months. On the other hand, the insider transactions over the last year are encouraging. We are also comforted by the high levels of insider ownership. 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. At Simply Wall St, we've found that Aidigong Maternal & Child Health has 3 warning signs (1 doesn't sit too well with us!) that deserve your attention before going any further with your analysis.
Of course Aidigong Maternal & Child Health may not be the best stock to buy. So you may wish to see this free collection of high quality 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 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.