Read This Before Selling Eagle Nice (International) Holdings Limited (HKG:2368) Shares

We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Eagle Nice (International) Holdings Limited (HKG:2368).

What Is Insider Buying?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, rules govern insider transactions, and certain disclosures are required.

We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

See our latest analysis for Eagle Nice (International) Holdings

The Last 12 Months Of Insider Transactions At Eagle Nice (International) Holdings

In the last twelve months, the biggest single purchase by an insider was when Vice Chairman Hsiao Ying Chen bought HK$4.0m worth of shares at a price of HK$3.70 per share. That implies that an insider found the current price of HK$3.82 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Eagle Nice (International) Holdings insiders decided to buy shares at close to current prices.

Eagle Nice (International) Holdings insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around HK$3.11. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Eagle Nice (International) Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Eagle Nice (International) Holdings Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Eagle Nice (International) Holdings. We can see that Vice Chairman Hsiao Ying Chen paid HK$4.0m for shares in the company. No-one sold. That shows some optimism about the company's future.

Insider Ownership of Eagle Nice (International) Holdings

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Eagle Nice (International) Holdings insiders own about HK$639m worth of shares. That equates to 31% of the company. 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 Do The Eagle Nice (International) Holdings 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 Eagle Nice (International) Holdings insiders are well aligned, and quite possibly think the share price is too low. Nice! 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. Every company has risks, and we've spotted 1 warning sign for Eagle Nice (International) Holdings you should know about.

Of course Eagle Nice (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, 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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