We wouldn't blame Modern Chinese Medicine Group Co., Ltd. (HKG:1643) shareholders if they were a little worried about the fact that Xinlei Sun, the Executive Chairman recently netted about HK$18m selling shares at an average price of HK$0.38. That's a big disposal, and it decreased their holding size by 11%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At Modern Chinese Medicine Group
Notably, that recent sale by Xinlei Sun is the biggest insider sale of Modern Chinese Medicine Group shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of HK$0.37. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
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!
I will like Modern Chinese Medicine Group better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does Modern Chinese Medicine Group 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Modern Chinese Medicine Group insiders own 75% of the company, worth about HK$167m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Modern Chinese Medicine Group Insiders?
An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. Case in point: We've spotted 3 warning signs for Modern Chinese Medicine Group you should be aware of.
But note: Modern Chinese Medicine Group 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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