Yongbiao Huang Buys Handful Of Shares In Eagle Nice (International) Holdings

Whilst it may not be a huge deal, we thought it was good to see that the Eagle Nice (International) Holdings Limited (HKG:2368) Executive Director, Yongbiao Huang, recently bought HK$728k worth of stock, for HK$4.55 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

Check out our latest analysis for Eagle Nice (International) Holdings

Eagle Nice (International) Holdings Insider Transactions Over The Last Year

Notably, that recent purchase by Yongbiao Huang is the biggest insider purchase of Eagle Nice (International) Holdings shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of HK$4.59. 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 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 chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of Eagle Nice (International) Holdings

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Eagle Nice (International) Holdings insiders own about HK$905m worth of shares (which is 34% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Eagle Nice (International) Holdings Tell Us?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. 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. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Eagle Nice (International) Holdings has 2 warning signs and it would be unwise to ignore them.

But note: Eagle Nice (International) Holdings 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.

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