Whilst it may not be a huge deal, we thought it was good to see that the Yuanda China Holdings Limited (HKG:2789) Founder & Chairman, Baohua Kang, recently bought HK$301k worth of stock, for HK$0.06 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
Yuanda China Holdings Insider Transactions Over The Last Year
In fact, the recent purchase by Baohua Kang was the biggest purchase of Yuanda China Holdings shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is HK$0.062. 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. In this case we're pleased to report that the insider bought shares at close to current prices. Baohua Kang was the only individual insider to buy during the last year. Notably Baohua Kang was also the biggest seller.
Baohua Kang bought a total of 77.20m shares over the year at an average price of HK$0.06. 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 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.
Does Yuanda China Holdings Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Yuanda China Holdings insiders own 60% of the company, worth about HK$226m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Yuanda China Holdings Insiders?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Yuanda China Holdings. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Yuanda China Holdings. Be aware that Yuanda China Holdings is showing 2 warning signs in our investment analysis, and 1 of those makes us a bit uncomfortable...
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.
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