Insiders who acquired CN¥1.51m worth of Cutia Therapeutics' (HKG:2487) stock at an average price of CN¥13.39 in the past 12 months may be dismayed by the recent 11% price decline. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth CN¥1.28m, which is not what they expected.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

The Last 12 Months Of Insider Transactions At Cutia Therapeutics

The CFO & Executive Director Yuqing Huang made the biggest insider purchase in the last 12 months. That single transaction was for HK$460k worth of shares at a price of HK$15.33 each. That means that even when the share price was higher than HK$11.32 (the recent price), an insider wanted to purchase shares. 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. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While Cutia Therapeutics insiders bought shares during the last year, they didn't sell. They paid about HK$13.39 on average. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Cutia Therapeutics is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At Cutia Therapeutics Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at Cutia Therapeutics. Not only was there no selling that we can see, but they collectively bought HK$1.5m worth of shares. This could be interpreted as suggesting a positive outlook.

Does Cutia Therapeutics Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our information indicates that Cutia Therapeutics insiders own about HK$1.3m worth of shares. This level of insider ownership is notably low, and not very encouraging.

So What Does This Data Suggest About Cutia Therapeutics Insiders?

It's certainly positive to see the recent insider purchases. 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. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Cutia Therapeutics insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Cutia Therapeutics. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Cutia Therapeutics.

But note: Cutia Therapeutics 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.