Geely Automobile Holdings Insiders Added CN¥35.8m Of Stock To Their Holdings

In the last year, multiple insiders have substantially increased their holdings of Geely Automobile Holdings Limited (HKG:175) stock, indicating that insiders' optimism about the company's prospects has increased.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Geely Automobile Holdings

Geely Automobile Holdings Insider Transactions Over The Last Year

The Executive Vice Chairman Dong Hui Li made the biggest insider purchase in the last 12 months. That single transaction was for HK$12m worth of shares at a price of HK$14.48 each. That means that even when the share price was higher than HK$13.60 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While Geely Automobile Holdings insiders bought shares during the last year, they didn't sell. 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!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Geely Automobile Holdings Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Geely Automobile Holdings. In total, insiders bought HK$36m worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.

Does Geely Automobile Holdings Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Geely Automobile Holdings insiders own about HK$3.5b worth of shares (which is 2.6% 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 Geely Automobile Holdings Tell Us?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Geely Automobile Holdings. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Geely Automobile Holdings. When we did our research, we found 2 warning signs for Geely Automobile Holdings (1 makes us a bit uncomfortable!) that we believe deserve your full attention.

Of course Geely Automobile Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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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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.