Yihong Guan Spends CN¥14m On Jiumaojiu International Holdings Stock

Those following along with Jiumaojiu International Holdings Limited (HKG:9922) will no doubt be intrigued by the recent purchase of shares by Yihong Guan, Chairman & CEO of the company, who spent a stonking HK$14m on stock at an average price of HK$5.38. While that only increased their holding size by 0.5%, it is still a big swing by our standards.

See our latest analysis for Jiumaojiu International Holdings

Jiumaojiu International Holdings Insider Transactions Over The Last Year

In fact, the recent purchase by Yihong Guan was the biggest purchase of Jiumaojiu International Holdings shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of HK$5.53 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.

In the last twelve months Jiumaojiu International Holdings insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Does Jiumaojiu International Holdings Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Jiumaojiu International Holdings insiders own 38% of the company, currently worth about HK$3.0b 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 Jiumaojiu International Holdings Insiders?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Jiumaojiu International Holdings insiders are well aligned, and quite possibly think the share price is too low. Nice! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.