Read This Before Selling Xinyi Automobile Glass Hong Kong Enterprises Limited (HKG:8328) Shares

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares in Xinyi Automobile Glass Hong Kong Enterprises Limited (HKG:8328).

Do Insider Transactions Matter?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, most countries require that the company discloses such transactions to the market.

We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

Check out our latest analysis for Xinyi Automobile Glass Hong Kong Enterprises

The Last 12 Months Of Insider Transactions At Xinyi Automobile Glass Hong Kong Enterprises

The Group CEO Ngan Ho Ng made the biggest insider purchase in the last 12 months. That single transaction was for HK$1.5m worth of shares at a price of HK$1.06 each. Even though the purchase was made at a significantly lower price than the recent price (HK$2.08), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Ngan Ho Ng bought 5.10m shares over the last 12 months at an average price of HK$1.13. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Xinyi Automobile Glass Hong Kong Enterprises is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Xinyi Automobile Glass Hong Kong Enterprises insiders own 70% of the company, worth about HK$942m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Xinyi Automobile Glass Hong Kong Enterprises Tell Us?

It doesn't really mean much that no insider has traded Xinyi Automobile Glass Hong Kong Enterprises shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Xinyi Automobile Glass Hong Kong Enterprises insiders think the business has merit. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - Xinyi Automobile Glass Hong Kong Enterprises has 2 warning signs we think you should be aware of.

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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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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