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We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Jacobson Pharma Corporation Limited (HKG:2633), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
Check out our latest analysis for Jacobson Pharma
Jacobson Pharma Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by Chairman Kwong Sum for HK$12m worth of shares, at about HK$1.61 per share. So we know that an insider sold shares at around the present share price of HK$1.59. They could have a variety of motivations for selling, but it's still not particularly encouraging to see. Arguably, insider selling at around current prices should give us reason to reflect on whether the stock is fully valued at the moment. Kwong Sum was the only individual insider to sell over the last year. Notably Kwong Sum was also the biggest buyer, having purchased HK$28m worth of shares.
Happily, we note that in the last year insiders paid HK$28m for 16.81m shares. But they sold 7.23m for HK$12m. Overall, Jacobson Pharma insiders were net buyers last year. They paid about HK$1.68 on average. I'd consider this a positive as it suggests insiders see value at around the current price, which is HK$1.59. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Jacobson Pharma Insiders Bought Stock Recently
It's good to see that Jacobson Pharma insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought HK$7.4m worth of shares. This makes one think the business has some good points.