Investors who take an interest in Fusen Pharmaceutical Company Limited (HKG:1652) should definitely note that the Executive Chairman, Changcheng Cao, recently paid HK$0.87 per share to buy HK$908k worth of the stock. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.
Fusen Pharmaceutical Insider Transactions Over The Last Year
In fact, the recent purchase by Changcheng Cao was the biggest purchase of Fusen Pharmaceutical shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of HK$0.90 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Fusen Pharmaceutical insiders decided to buy shares at close to current prices.
In the last twelve months Fusen Pharmaceutical insiders were buying shares, but not selling. 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!
Fusen Pharmaceutical is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Fusen Pharmaceutical
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 Fusen Pharmaceutical insiders own 54% of the company, worth about HK$356m. 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 Fusen Pharmaceutical Tell Us?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Fusen Pharmaceutical insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Fusen Pharmaceutical. To that end, you should learn about the 3 warning signs we've spotted with Fusen Pharmaceutical (including 2 which are concerning).
Of course Fusen Pharmaceutical may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.