Bullish Yixin Group Insiders Rewarded As Their Investment Rises To CN¥40.5m

Yixin Group Limited (HKG:2858) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 13%, resulting in a HK$676m rise in the company's market capitalisation, translating to a gain of 50% on their initial investment. As a result, the stock they originally bought for CN¥27.0m is now worth CN¥40.5m.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Yixin Group

The Last 12 Months Of Insider Transactions At Yixin Group

The insider Ling Kay Tsang made the biggest insider purchase in the last 12 months. That single transaction was for HK$27m worth of shares at a price of HK$0.60 each. Even though the purchase was made at a significantly lower price than the recent price (HK$0.90), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

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!

Yixin Group is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 9.4% of Yixin Group shares, worth about HK$571m. 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 Yixin Group Insiders?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Yixin Group. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Yixin Group. Case in point: We've spotted 2 warning signs for Yixin Group you should be aware of, and 1 of these is a bit concerning.

Of course Yixin Group 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.