Kimou Environmental Holding Insiders Placed Bullish Bets Worth CN¥32.6m

In the last year, multiple insiders have substantially increased their holdings of Kimou Environmental Holding Limited (HKG:6805) stock, indicating that insiders' optimism about the company's prospects has increased.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Kimou Environmental Holding

Kimou Environmental Holding Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Executive Chairman of the Board Lianghong Zhang bought HK$22m worth of shares at a price of HK$1.25 per share. That means that an insider was happy to buy shares at above the current price of HK$1.20. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for 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. Their average price was about HK$1.09. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Kimou Environmental Holding is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of Kimou Environmental Holding

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 about HK$955m worth of shares (which is 72% of the company). 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 Kimou Environmental Holding Insiders?

The fact that there have been no Kimou Environmental Holding insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Kimou Environmental Holding insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Kimou Environmental Holding. Every company has risks, and we've spotted 2 warning signs for Kimou Environmental Holding (of which 1 is significant!) you should know about.

But note: Kimou Environmental Holding 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 of direct interests only, but not derivative transactions or indirect interests.

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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.