Whilst it may not be a huge deal, we thought it was good to see that the Clarity Medical Group Holding Limited (HKG:1406) Executive Director, Wai Ip Tse, recently bought HK$589k worth of stock, for HK$1.19 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

Check out our latest analysis for Clarity Medical Group Holding

The Last 12 Months Of Insider Transactions At Clarity Medical Group Holding

Notably, that recent purchase by Executive Director Wai Ip Tse was not the only time they bought Clarity Medical Group Holding shares this year. They previously made an even bigger purchase of HK$735k worth of shares at a price of HK$1.47 per share. That means that even when the share price was higher than HK$1.20 (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. 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. Wai Ip Tse was the only individual insider to buy shares in the last twelve months.

Wai Ip Tse bought 1.94m shares over the last 12 months at an average price of HK$1.24. 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!

Clarity Medical Group Holding is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership Of Clarity Medical Group Holding

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 23% of Clarity Medical Group Holding shares, worth about HK$144m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Clarity Medical Group Holding Tell Us?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Clarity Medical Group Holding insiders are well aligned, and quite possibly think the share price is too low. Nice! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that Clarity Medical Group Holding is showing 5 warning signs in our investment analysis, and 1 of those shouldn't be ignored...

But note: Clarity Medical Group Holding 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, but not derivative transactions.

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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.