Whilst it may not be a huge deal, we thought it was good to see that the Consun Pharmaceutical Group Limited (HKG:1681) Vice Chairlady of the Board & CEO, Qian Li, recently bought HK$384k worth of stock, for HK$3.84 per share. However, we do note that it only increased their holding by 0.07%, and it wasn't a huge purchase by absolute value, either.
Consun Pharmaceutical Group Insider Transactions Over The Last Year
Notably, that recent purchase by Vice Chairlady of the Board & CEO Qian Li was not the only time they bought Consun Pharmaceutical Group shares this year. Earlier in the year, they paid HK$4.36 per share in a HK$502k purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$3.90). 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. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Qian Li was the only individual insider to buy over the year.
Qian Li purchased 651.00k shares over the year. The average price per share was HK$4.16. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Consun Pharmaceutical Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Consun Pharmaceutical Group insiders own 54% of the company, worth about HK$1.8b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Consun Pharmaceutical Group Tell Us?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Consun Pharmaceutical Group insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! Of course, the future is what matters most. So if you are interested in Consun Pharmaceutical Group, you should check out this free report on analyst forecasts for the company.
But note: Consun Pharmaceutical 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, but not derivative transactions.
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.
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