Whilst it may not be a huge deal, we thought it was good to see that the Dawnrays Pharmaceutical (Holdings) Limited (HKG:2348) Co-Founder & Executive Chairman, Kei Ling Li, recently bought HK$425k worth of stock, for HK$1.48 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
The Last 12 Months Of Insider Transactions At Dawnrays Pharmaceutical (Holdings)
In the last twelve months, the biggest single purchase by an insider was when CEO & Executive Director Shaojun Chen bought HK$5.8m worth of shares at a price of HK$1.10 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$1.47. Because it occurred at a lower valuation, it doesn’t tell us much about whether insiders might find today’s price attractive.
Dawnrays Pharmaceutical (Holdings) insiders may have bought shares in the last year, but they didn’t sell any. 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).
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. Insiders own 14% of Dawnrays Pharmaceutical (Holdings) shares, worth about HK$324m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Dawnrays Pharmaceutical (Holdings) Insider Transactions Indicate?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Dawnrays Pharmaceutical (Holdings). Nice! In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Dawnrays Pharmaceutical (Holdings). To help with this, we’ve discovered 2 warning signs (1 doesn’t sit too well with us!) that you ought to be aware of before buying any shares in Dawnrays Pharmaceutical (Holdings).
Of course Dawnrays Pharmaceutical (Holdings) 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.
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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. 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.
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