Genscript Biotech Corporation (HKG: 1548) insiders reportedly made a handsome sum after selling $ 9.1million in shares at a high price
Although Genscript Biotech Corporation (HKG: 1548) The stock rose 7.4% last week, insiders who sold $ 9.1 million in stock in the past year are likely better off. Selling at an average price of US $ 41.99, which is higher than the current price, may have been the best decision for these insiders, as their investment would have been worth less now than when it was sold.
While we don’t think shareholders should just follow insider trading, logic dictates that you pay attention to whether insiders are buying or selling stocks.
See our latest review for Genscript Biotech
The last 12 months of insider trading at Genscript Biotech
The chairman of the board and secretary of the board, Jiange Meng, achieved the biggest insider sale in the past 12 months. This single transaction involved shares valued at HK $ 9.1 million priced at HK $ 42.03 each. This means that an insider was selling shares around the current price of HK $ 40.10. While we generally don’t like to see insider sales, it is more of a concern whether the sales come at a lower price. Given that the sale took place around current prices, this makes us a little cautious but is not a major concern.
In the past year, Genscript Biotech insiders have not purchased any shares in the company. You can see insider trading (by companies and individuals) over the past year represented in the graph below. By clicking on the graph below, you can see the precise detail of each insider trade!
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Insider property of Genscript Biotech
For an ordinary shareholder, it is worth checking out how many shares are owned by company insiders. We generally like to see fairly high levels of insider ownership. It appears that Genscript Biotech insiders own 0.1% of the company, worth around HK $ 110 million. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest an alignment between insiders and other shareholders.
So what does this data suggest about Genscript Biotech insiders?
It doesn’t really mean much that no insider traded shares of Genscript Biotech in the past quarter. It’s great to see high levels of insider ownership, but looking back on last year, we’re not gaining the trust of Genscript Biotech insiders selling. So these insider trading can help us build a stock thesis, but it’s also worth knowing the risks this business faces. Concrete example: we have spotted 2 warning signs for Genscript Biotech you must be aware.
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For the purposes of this article, insiders are the persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
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