Those following along with Xinyi Glass Holdings Limited (HKG:868) will no doubt be intrigued by the recent purchase of shares by Ching Sai Tung, CEO & Executive Director of the company, who spent a stonking HK$19m on stock at an average price of HK$7.74. While that only increased their holding size by 0.6%, it is still a big swing by our standards.
The Last 12 Months Of Insider Transactions At Xinyi Glass Holdings
In fact, the recent purchase by Ching Sai Tung was the biggest purchase of Xinyi Glass Holdings shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than HK$7.49 (the recent price), an insider wanted to purchase shares. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Ching Sai Tung was the only individual insider to buy over the year.
Ching Sai Tung bought 3.5m shares over the last 12 months at an average price of HK$7.72. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Insider Ownership of Xinyi Glass Holdings
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 incentivised to build the company for the long term. Xinyi Glass Holdings insiders own 57% of the company, currently worth about HK$17b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Xinyi Glass Holdings Insiders?
It’s certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Xinyi Glass Holdings. That’s what I like to see! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Xinyi Glass Holdings.
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, but not derivative transactions.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.