From what we can see, insiders were net sellers in InnoCare Pharma Limited's (HKG:9969 ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.    

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

InnoCare Pharma Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Pang Kee Chan, sold HK$1.5m worth of shares at a price of HK$4.91 per share.    That means that an insider was selling shares at  slightly  below the current price (HK$5.80).  We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable.  Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price.   We note that the biggest single sale was only 0.2% of Pang Kee Chan's holding.      The only individual insider seller over the last year was Pang Kee Chan.  

Pang Kee Chan divested 366.00k shares over the last 12 months at an average price of CN¥5.14.   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!

SEHK:9969 Insider Trading Volume September 18th 2024

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of InnoCare Pharma

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders.  We usually like to see fairly high levels of insider ownership.   It's great to see that InnoCare Pharma insiders own 23% of the company, worth about HK$2.8b.  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 InnoCare Pharma Tell Us?

The fact that there have been no InnoCare Pharma insider transactions recently certainly doesn't bother us.      It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the InnoCare Pharma insiders selling.       So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company.    Case in point: We've spotted 1 warning sign for InnoCare Pharma you should be aware of.  

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.