Market cap

China Resources Medical Holdings Company Limited (HKG: 1515)) market cap declines to HK $ 7.6 billion, but insiders who sold shares of CN’s 4.7 million were able to cover their losses


Initiated to China Resources Medical Holdings Company Limited (HKG: 1515) has sold shares worth CN 4.7 million at an average price of CN Â¥ 9.43 per share in the past year, making the most of their investment. After the stock price fell 7.1% last week, the company’s market value fell by HK $ 584 million, but insiders were able to mitigate their losses.

While we never suggest that investors should base their decisions solely on what the directors of a company have done, we consider it foolish to ignore insider trading altogether.

Check out our latest analysis for China Resources Medical Holdings

China Resources Medical Holdings Insider Transactions in the Past Year

The biggest insider sale in the past twelve months was when independent non-executive director Ting Yuk Wu sold HK $ 4.7 million of shares at a price of HK $ 9.43 per share. While insider selling is negative, for us it is even more so if stocks are sold for a lower price. It is heartwarming that this sale was made at a much higher price than the current share price, which is HK $ 5.87. So it might not shed much light on insider confidence at current levels. Ting Yuk Wu was the only individual insider for sale in the past year.

Below you can see a visual representation of insider trading (by businesses and individuals) over the past 12 months. By clicking on the graph below, you can see the precise detail of each insider trade!

SEHK: 1,515 Insider Trading Volume October 8, 2021

If you like to buy stocks that insiders buy rather than sell, then you might love this free list of companies. (Hint: insiders bought them).

Insider ownership

For an ordinary shareholder, it is worth checking out how many shares are owned by company insiders. I think it’s a good sign if the insiders own a significant number of shares in the company. Our data suggests that insiders of China Resources Medical Holdings own 0.2% of the company, worth around HK $ 12 million. We note, however, that it is possible that insiders may have an indirect interest through a private company or other corporate structure. I generally like to see higher levels of ownership.

So what do China Resources Medical Holdings’ insider trading indicate?

It doesn’t really mean much that no insider traded shares of China Resources Medical Holdings in the past quarter. Our analysis of China Resources Medical Holdings insider trading leaves us cautious. But it’s good to see that the insiders own shares in the company. In addition to knowing the ongoing insider trading, it is helpful to identify the risks China Resources Medical Holdings faces. You would be interested to know that we have found 1 warning sign for China Resources Medical Holdings and we suggest you take a look.

But beware : China Resources Medical Holdings May Not Be The Best Stock To Buy. So take a look at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are the persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.

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