Stock Analysis

Xin Point Holdings Limited (HKG:1571) insiders have profited after buying stock worth CN¥4.6m last year, current gains stand at CN¥638k

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Insiders who bought Xin Point Holdings Limited (HKG:1571) in the last 12 months may probably not pay attention to the stock's recent 14% drop. Reason being, despite the recent loss, insiders original purchase value of CN¥4.6m is now worth CN¥5.2m.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Xin Point Holdings

The Last 12 Months Of Insider Transactions At Xin Point Holdings

Over the last year, we can see that the biggest insider purchase was by Chairman Xiaoming Ma for HK$2.3m worth of shares, at about HK$2.30 per share. So it's clear an insider wanted to buy, at around the current price, which is HK$2.47. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Xin Point Holdings insider decided to buy shares at close to current prices. Xiaoming Ma was the only individual insider to buy during the last year.

Xiaoming Ma purchased 2.11m shares over the year. The average price per share was HK$2.17. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

SEHK:1571 Insider Trading Volume March 15th 2023

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Xin Point Holdings insiders own 74% of the company, currently worth about HK$1.8b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Xin Point Holdings Insider Transactions Indicate?

The fact that there have been no Xin Point Holdings insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Xin Point Holdings insiders think the business has merit. While we like knowing 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. While conducting our analysis, we found that Xin Point Holdings has 2 warning signs and it would be unwise to ignore these.

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.

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