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Insider Buying: Duality Biotherapeutics CEO & Chairman Bought CN¥3.1m Of Shares
Investors who take an interest in Duality Biotherapeutics, Inc. (HKG:9606) should definitely note that the CEO & Chairman, Zhongyuan Zhu, recently paid HK$103 per share to buy HK$3.1m worth of the stock. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.
The Last 12 Months Of Insider Transactions At Duality Biotherapeutics
The CFO & Executive Director, Shaoren Zhang, made the biggest insider sale in the last 12 months. That single transaction was for HK$54m worth of shares at a price of HK$358 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$101. So it may not tell us anything about how insiders feel about the current share price.
Over the last year we saw more insider selling of Duality Biotherapeutics shares, than buying. The sellers received a price of around CN¥356, on average. It is certainly not great to see that insiders have sold shares in the company. But the selling was at much higher prices than the current share price (HK$101), so it probably doesn't tell us a lot about the value on offer today. You can see the insider transactions (by companies and 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!
View our latest analysis for Duality Biotherapeutics
I will like Duality Biotherapeutics better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Duality Biotherapeutics insiders own about HK$1.2b worth of shares (which is 13% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Duality Biotherapeutics Tell Us?
It is good to see the recent insider purchase. However, the longer term transactions are not so encouraging. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, Duality Biotherapeutics insiders are reasonably well aligned, and optimistic for the future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 2 warning signs for Duality Biotherapeutics that deserve your attention before buying any shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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