Potential CK Life Sciences Int'l., (Holdings) Inc. (HKG:775) shareholders may wish to note that the VP, CEO & Executive Director, Lance Richard Lee Yuen, recently bought HK$969k worth of stock, paying HK$0.46 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 1,253%, potentially signalling some real optimism.

CK Life Sciences Int'l. (Holdings) Insider Transactions Over The Last Year

Notably, that recent purchase by Lance Richard Lee Yuen is the biggest insider purchase of CK Life Sciences Int'l. (Holdings) shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of HK$0.45. It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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. Lance Richard Lee Yuen was the only individual insider to buy during the last year.

Lance Richard Lee Yuen bought 2.30m shares over the last 12 months at an average price of HK$0.46. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does CK Life Sciences Int'l. (Holdings) Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. CK Life Sciences Int'l. (Holdings) insiders own 22% of the company, currently worth about HK$960m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The CK Life Sciences Int'l. (Holdings) Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about CK Life Sciences Int'l. (Holdings). Looks promising! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 2 warning signs for CK Life Sciences Int'l. (Holdings) you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.