Insider Spends CN¥765k Buying More Shares In Yidu Tech

Even if it's not a huge purchase, we think it was good to see that Xiaoying Feng, the CFO, Joint Company Secretary & Executive Director of Yidu Tech Inc. (HKG:2158) recently shelled out HK$765k to buy stock, at HK$4.20 per share. Even though that isn't a massive buy, it did increase their holding by 86%, which is arguably a good sign.

Check out our latest analysis for Yidu Tech

The Last 12 Months Of Insider Transactions At Yidu Tech

In fact, the recent purchase by Xiaoying Feng was the biggest purchase of Yidu Tech shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than HK$3.88 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. 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. Xiaoying Feng was the only individual insider to buy shares in the last twelve months.

Xiaoying Feng bought 350.00k shares over the last 12 months at an average price of HK$4.18. 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!

Yidu Tech is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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. We usually like to see fairly high levels of insider ownership. Yidu Tech insiders own about HK$1.6b worth of shares (which is 40% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Yidu Tech Tell Us?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Yidu Tech insiders are well aligned, and quite possibly think the share price is too low. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Yidu Tech. Case in point: We've spotted 2 warning signs for Yidu Tech you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.