CEO & Executive Chairman of East Buy Holding Picks Up 3.4% More Stock

East Buy Holding Limited (HKG:1797) shareholders (or potential shareholders) will be happy to see that the CEO & Executive Chairman, Minhong Yu, recently bought a whopping HK$22m worth of stock, at a price of HK$24.19. While that only increased their holding size by 3.4%, it is still a big swing by our standards.

Check out our latest analysis for East Buy Holding

The Last 12 Months Of Insider Transactions At East Buy Holding

In fact, the recent purchase by Minhong Yu was the biggest purchase of East Buy Holding shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$23.35). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Minhong Yu.

Minhong Yu purchased 1.50m shares over the year. The average price per share was HK$24.20. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Does East Buy Holding Boast High Insider Ownership?

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. East Buy Holding insiders own about HK$763m worth of shares. That equates to 3.2% 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 Does This Data Suggest About East Buy Holding Insiders?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about East Buy Holding. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with East Buy Holding and understanding them should be part of your investment process.

Of course East Buy Holding 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.