Simply Wall St

Despite Beijing Tong Ren Tang Chinese Medicine Company Limited’s recent pullback, insiders still made around HK$26,000 after buying earlier this year.

Insiders who bought Beijing Tong Ren Tang Chinese Medicine Company Limited (HKG:3613) stocks over the past 12 months should not be deeply affected by the stock’s 5.6% decline over the past week. Even after taking into account the recent loss, the HK$577,000 of shares they bought are now worth HK$603,000 or, in other words, their investment is still giving good returns.

While we don’t think shareholders should simply follow insider trades, we think it makes perfect sense to keep an eye on what insiders are doing.

Our analysis indicates that 3613 is potentially undervalued!

Beijing Tong Ren Tang Chinese medicine insider transactions over the past year

While no particular insider trades stood out, we can still review all of the trades.

Beijing Tong Ren Tang Chinese Medicine insiders may have bought shares last year, but they haven’t sold any. You can see a visual representation of insider trading (by companies and individuals) over the past 12 months, below. By clicking on the graph below, you will be able to see the precise detail of each insider trade!

SEHK:3613 Insider Trading Volume November 26, 2022

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

Are Chinese Medicine Insiders Tong Ren Tang in Beijing Buying or Selling?

CEO and Executive Director Fei Chen purchased shares for just HK$9.7,000 at that time. It’s not much at all. Overall, we don’t think these recent transactions are particularly informative, one way or another.

Property of Chinese Medicine Insiders Tong Ren Tang from Beijing

I like to look at how many shares insiders own in a company, to help me get a sense of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely insiders will be incentivized to build the company for the long term. Our information indicates that Beijing Tong Ren Tang Chinese Medicine insiders hold approximately HK$7.5 million in shares. But they may have an indirect interest through a corporate structure that we have not noted. We may be missing something, but it seems like very weak insider property.

So what does this data suggest about Chinese medicine insiders Tong Ren Tang from Beijing?

Our data shows some insider buying, but no selling, over the past three months. The net investment is not enough to encourage us much. But insiders have shown more appetite for the stock over the past year. The transactions are good, but it would be more encouraging if Beijing Tong Ren Tang Chinese Medicine insiders bought more shares in the company. If you’re like me, you might want to ask yourself if this business will grow or shrink. Luckily you can check this free report showing analysts’ predictions for its future.

If you’d rather check out another company – one with potentially superior finances – then don’t miss this free list of attractive companies, which have a high return on equity and low debt.

For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.

Valuation is complex, but we help make it simple.

Find out if Beijing Tong Ren Tang Chinese Medicine is potentially overvalued or undervalued by viewing our full analysis, which includes fair value estimates, risks and warnings, dividends, insider trading and financial health.

See the free analysis

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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