Insiders At Zhong Ji Longevity Science Group See Good Returns After Buying Stock Worth HK$16.5m

Simply Wall St · 08/30 23:21

Insiders who bought Zhong Ji Longevity Science Group Limited (HKG:767) in the last 12 months may probably not pay attention to the stock's recent 11% drop. Reason being, despite the recent loss, insiders original purchase value of HK$16.5m is now worth HK$19.6m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Zhong Ji Longevity Science Group

The Last 12 Months Of Insider Transactions At Zhong Ji Longevity Science Group

Over the last year, we can see that the biggest insider purchase was by insider Jianyong Wang for HK$10.0m worth of shares, at about HK$0.21 per share. Even though the purchase was made at a significantly lower price than the recent price (HK$0.26), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

While Zhong Ji Longevity Science Group insiders bought shares during the last year, they didn't sell. 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!

insider-trading-volume
SEHK:767 Insider Trading Volume August 30th 2024

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insiders At Zhong Ji Longevity Science Group Have Bought Stock Recently

It's good to see that Zhong Ji Longevity Science Group insiders have made notable investments in the company's shares. In total, insiders bought HK$16m worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Zhong Ji Longevity Science Group insiders own 50% of the company, currently worth about HK$69m 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 Zhong Ji Longevity Science Group Insider Transactions Indicate?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Zhong Ji Longevity Science Group. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Zhong Ji Longevity Science Group. To that end, you should learn about the 3 warning signs we've spotted with Zhong Ji Longevity Science Group (including 1 which shouldn't be ignored).

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.