Qiuhong Zhou of Bank of Jiujiang Co., Ltd. (HKG:6190) Just Spent CN¥13m On Shares

Those following along with Bank of Jiujiang Co., Ltd. (HKG:6190) will no doubt be intrigued by the recent purchase of shares by insider Qiuhong Zhou, who spent a stonking HK$13m on stock at an average price of HK$10.61. While that only increased their holding size by 4.3%, it is still a big swing by our standards.

See our latest analysis for Bank of Jiujiang

The Last 12 Months Of Insider Transactions At Bank of Jiujiang

In fact, the recent purchase by Qiuhong Zhou was the biggest purchase of Bank of Jiujiang shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$10.60). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Qiuhong Zhou was the only individual insider to buy shares in the last twelve months.

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!

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

Does Bank of Jiujiang Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Bank of Jiujiang insiders own 1.1% of the company, worth about HK$278m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Bank of Jiujiang Tell Us?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Bank of Jiujiang. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Bank of Jiujiang. Be aware that Bank of Jiujiang is showing 2 warning signs in our investment analysis, and 1 of those makes us a bit uncomfortable...

But note: Bank of Jiujiang may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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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. 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.
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