Insiders who bought CN¥692.9k worth of Jacobio Pharmaceuticals Group Co., Ltd. (HKG:1167) stock in the last year recovered part of their losses as the stock rose by 32% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled CN¥160k since the time of purchase.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Jacobio Pharmaceuticals Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Executive Chairman & CEO Yinxiang Wang for HK$594k worth of shares, at about HK$3.00 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$2.30). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Yinxiang Wang was the only individual insider to buy during the last year.

Yinxiang Wang purchased 231.90k shares over the year. The average price per share was HK$2.99. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Does Jacobio Pharmaceuticals Group Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 19% of Jacobio Pharmaceuticals Group shares, worth about HK$354m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Jacobio Pharmaceuticals Group Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, Jacobio Pharmaceuticals Group insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Jacobio Pharmaceuticals Group. You'd be interested to know, that we found 1 warning sign for Jacobio Pharmaceuticals Group and we suggest you have a look.

But note: Jacobio Pharmaceuticals 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 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.