Insider Spends CN¥593k Buying More Shares In Kimou Environmental Holding

Whilst it may not be a huge deal, we thought it was good to see that the Kimou Environmental Holding Limited (HKG:6805) Financial Controller & Executive Director, Shaobo Huang, recently bought HK$593k worth of stock, for HK$1.23 per share. Although the purchase is not a big one, increasing their shareholding by only 1.7%, it can be interpreted as a good sign.

Check out our latest analysis for Kimou Environmental Holding

The Last 12 Months Of Insider Transactions At Kimou Environmental Holding

The Executive Chairman of the Board Lianghong Zhang made the biggest insider purchase in the last 12 months. That single transaction was for HK$22m worth of shares at a price of HK$1.25 each. That means that even when the share price was higher than HK$1.21 (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. We always take careful note of the price insiders pay when purchasing shares. 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 Kimou Environmental Holding insiders bought shares during the last year, they didn't sell. 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. 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).

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Kimou Environmental Holding insiders own 72% of the company, currently worth about HK$965m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Kimou Environmental Holding Insider Transactions Indicate?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Kimou Environmental Holding insiders are well aligned, and quite possibly think the share price is too low. Looks promising! 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, Kimou Environmental Holding has 2 warning signs (and 1 which can't be ignored) we think you should know about.

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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.