Founder of Xtep International Holdings Shui Po Ding Buys 2.1% More Shares

Xtep International Holdings Limited (HKG:1368) shareholders (or potential shareholders) will be happy to see that the Founder, Shui Po Ding, recently bought a whopping HK$6.5m worth of stock, at a price of HK$4.44. While that only increased their holding size by 2.1%, it is still a big swing by our standards.

See our latest analysis for Xtep International Holdings

The Last 12 Months Of Insider Transactions At Xtep International Holdings

In fact, the recent purchase by Founder Shui Po Ding was not their only acquisition of Xtep International Holdings shares this year. They previously made an even bigger purchase of HK$14m worth of shares at a price of HK$7.08 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$4.46). 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Xtep International Holdings insiders may have bought shares in the last year, but they didn't sell any. Their average price was about HK$6.20. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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.

Insider Ownership Of Xtep International Holdings

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Xtep International Holdings insiders own 2.9% of the company, worth about HK$330m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Xtep International Holdings Insiders?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Xtep International Holdings insiders are well aligned, and quite possibly think the share price is too low. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Xtep International Holdings. At Simply Wall St, we found 1 warning sign for Xtep International Holdings that deserve your attention before buying any shares.

Of course Xtep International 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 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.