Ching Sai Tung Is The Non-Executive Chairman of the Board of Xinyi Electric Storage Holdings Limited (HKG:8328) And Just Spent HK$6.0m On Shares

Those following along with Xinyi Electric Storage Holdings Limited (HKG:8328) will no doubt be intrigued by the recent purchase of shares by Ching Sai Tung, Non-Executive Chairman of the Board of the company, who spent a stonking HK$6.0m on stock at an average price of HK$4.92. While that only increased their holding size by 0.4%, it is still a big swing by our standards.

Check out our latest analysis for Xinyi Electric Storage Holdings

Xinyi Electric Storage Holdings Insider Transactions Over The Last Year

Notably, that recent purchase by Ching Sai Tung is the biggest insider purchase of Xinyi Electric Storage Holdings shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of HK$4.60. 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

While Xinyi Electric Storage Holdings insiders bought shares during the last year, they didn't sell. Their average price was about HK$2.56. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. 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!

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).

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Xinyi Electric Storage Holdings insiders own 70% of the company, worth about HK$2.1b. 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 Does This Data Suggest About Xinyi Electric Storage Holdings Insiders?

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 Xinyi Electric Storage Holdings. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with Xinyi Electric Storage Holdings and understanding it should be part of your investment process.

Of course Xinyi Electric Storage 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, 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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