Even if it's not a huge purchase, we think it was good to see that Chun Leung Yim, the Company Secretary & Executive Director of Jacobson Pharma Corporation Limited (HKG:2633) recently shelled out HK$204k to buy stock, at HK$1.20 per share. However, we do note that it only increased their holding by 0.6%, and it wasn't a huge purchase by absolute value, either.
Jacobson Pharma Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Chairman, Kwong Yip Sum, sold HK$12m worth of shares at a price of HK$1.61 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (HK$1.05). So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Kwong Yip Sum. Notably Kwong Yip Sum was also the biggest buyer, having purchased HK$17m worth of shares.
Happily, we note that in the last year insiders paid HK$17m for 10958000 shares. But they sold 7231000 for HK$12m. In the last twelve months there was more buying than selling by Jacobson Pharma insiders. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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).
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Jacobson Pharma insiders own about HK$1.4b worth of shares (which is 65% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Jacobson Pharma Tell Us?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Jacobson Pharma. Looks promising! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Jacobson Pharma.
Of course Jacobson Pharma 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, but not derivative transactions.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.