Some China Biotech Services Holdings Limited (HKG:8037) shareholders may be a little concerned to see that the Executive Chairman & Compliance Officer, Xiaolin Liu, recently sold a substantial HK$5.0m worth of stock at a price of HK$0.40 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 2.3%.

The Last 12 Months Of Insider Transactions At China Biotech Services Holdings

Notably, that recent sale by Xiaolin Liu is the biggest insider sale of China Biotech Services Holdings shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of HK$0.39. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that China Biotech Services Holdings insiders own 65% of the company, worth about HK$244m. 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 China Biotech Services Holdings Tell Us?

An insider sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing China Biotech Services Holdings. When we did our research, we found 3 warning signs for China Biotech Services Holdings (1 makes us a bit uncomfortable!) that we believe deserve your full attention.

But note: China Biotech Services Holdings 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.

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