Insiders in Raymond Industrial Limited (HKG:229) are down 12% on their HK$40m purchase despite recent gains

From what we can see, insiders were net buyers in Raymond Industrial Limited's (HKG:229 ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Raymond Industrial

The Last 12 Months Of Insider Transactions At Raymond Industrial

In the last twelve months, the biggest single purchase by an insider was when Vice Chairman & GM Ying Man Wong bought HK$40m worth of shares at a price of HK$1.00 per share. That means that even when the share price was higher than HK$0.88 (the recent price), an insider wanted to purchase shares. 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. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Ying Man Wong.

Ying Man Wong bought a total of 40.21m shares over the year at an average price of HK$1.00. 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!

Raymond Industrial is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership Of Raymond Industrial

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Raymond Industrial insiders own 44% of the company, currently worth about HK$195m based on the recent share price. 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 Raymond Industrial Insiders?

The fact that there have been no Raymond Industrial insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, Raymond Industrial insiders feel good about the company's future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 1 warning sign for Raymond Industrial that deserve your attention before buying any shares.

Of course Raymond Industrial 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. 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.