From what we can see, insiders were net sellers in InnoCare Pharma Limited's (HKG:9969 ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

InnoCare Pharma Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Chan Pang Kee, for HK$1.5m worth of shares, at about HK$4.91 per share. That means that an insider was selling shares at slightly below the current price (HK$5.10). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 0.2% of Chan Pang Kee's stake. Chan Pang Kee was the only individual insider to sell over the last year.

Chan Pang Kee divested 366.00k shares over the last 12 months at an average price of CN¥5.14. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insiders At InnoCare Pharma Have Sold Stock Recently

The last quarter saw substantial insider selling of InnoCare Pharma shares. Specifically, insider Chan Pang Kee ditched HK$1.9m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership Of InnoCare Pharma

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. InnoCare Pharma insiders own 23% of the company, currently worth about HK$2.4b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About InnoCare Pharma Insiders?

An insider sold InnoCare Pharma shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing InnoCare Pharma. For example - InnoCare Pharma has 2 warning signs we think you should be aware of.

But note: InnoCare Pharma 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.