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In spite of Beijing Tong Ren Tang Chinese Medicine Company Limited’s recent pullback, insiders still gained about HK$26k after buying earlier this year.

Simply Wall St
Written by admin

Insiders who purchased Beijing Tong Ren Tang Chinese Medicine Company Limited (HKG:3613) shares in the past 12 months are unlikely to be deeply impacted by the stock’s 5.6% decline over the past week. Even after accounting for the recent loss, the HK$577k worth of stock purchased by them is now worth HK$603k or in other words, their investment continues to give good returns.

Although we don’t think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Our analysis indicates that 3613 is potentially undervalued!

Beijing Tong Ren Tang Chinese Medicine Insider Transactions Over The Last Year

While no particular insider transaction stood out, we can still look at the overall trading.

Beijing Tong Ren Tang Chinese Medicine insiders may have bought shares in the last year, but they didn’t sell any. 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!

insider-trading-volume
SEHK:3613 Insider Trading Volume November 26th 2022

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Are Beijing Tong Ren Tang Chinese Medicine Insiders Buying Or Selling?

CEO & Executive Director Fei Chen bought just HK$9.7k worth of shares in that time. That’s not much at all. Overall, we don’t think these recent trades are particularly informative, one way or the other.

Insider Ownership Of Beijing Tong Ren Tang Chinese Medicine

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivized to build the company for the long term. Our information indicates that Beijing Tong Ren Tang Chinese Medicine insiders own about HK$7.5m worth of shares. But they may have an indirect interest through a corporate structure that we haven’t picked up on. We might be missing something but that seems like very low insider ownership.

So What Does This Data Suggest About Beijing Tong Ren Tang Chinese Medicine Insiders?

Our data shows a little insider buying, but no selling, in the last three months. The net investment is not enough to encourage us much. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it’d be more encouraging if Beijing Tong Ren Tang Chinese Medicine insiders bought more shares in the company. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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, but not derivative transactions.

Valuation is complex, but we’re helping make it simple.

Find out whether Beijing Tong Ren Tang Chinese Medicine is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

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.

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