Insider Buys Additional CN¥4.0m In Xiabuxiabu Catering Management (China) Holdings Stock

Xiabuxiabu Catering Management (China) Holdings Co., Ltd. (HKG:520) shareholders (or potential shareholders) will be happy to see that the CEO & Executive Chairman of the Board, Kuang-Chi Ho, recently bought a whopping HK$4.0m worth of stock, at a price of HK$1.59. While that only increased their holding size by 0.6%, it is still a big swing by our standards.

Check out our latest analysis for Xiabuxiabu Catering Management (China) Holdings

The Last 12 Months Of Insider Transactions At Xiabuxiabu Catering Management (China) Holdings

Notably, that recent purchase by Kuang-Chi Ho is the biggest insider purchase of Xiabuxiabu Catering Management (China) Holdings shares that we've seen in the last year. That implies that an insider found the current price of HK$1.63 per share to be enticing. 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. In this case we're pleased to report that the insider bought shares at close to current prices. The only individual insider to buy over the last year was Kuang-Chi Ho.

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!

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Does Xiabuxiabu Catering Management (China) Holdings Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Xiabuxiabu Catering Management (China) Holdings insiders own 37% of the company, worth about HK$650m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Xiabuxiabu Catering Management (China) Holdings Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Xiabuxiabu Catering Management (China) Holdings. One for the watchlist, at least! 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. Case in point: We've spotted 1 warning sign for Xiabuxiabu Catering Management (China) Holdings you should be aware of.

Of course Xiabuxiabu Catering Management (China) 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.