Anyone interested in CK Life Sciences Int'l., (Holdings) Inc. (HKG:775) should probably be aware that the President & Executive Director, Hing Lam Kam, recently divested HK$1.3m worth of shares in the company, at an average price of HK$0.55 each. The eyebrow raising move amounted to a reduction of 37% in their holding.

The Last 12 Months Of Insider Transactions At CK Life Sciences Int'l. (Holdings)

In fact, the recent sale by Hing Lam Kam was the biggest sale of CK Life Sciences Int'l. (Holdings) shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of HK$0.54. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. CK Life Sciences Int'l. (Holdings) insiders own 22% of the company, currently worth about HK$1.2b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The CK Life Sciences Int'l. (Holdings) Insider Transactions Indicate?

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. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 3 warning signs for CK Life Sciences Int'l. (Holdings) (2 shouldn't be ignored!) and we strongly recommend you look at these before investing.

But note: CK Life Sciences Int'l. (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.