China Ludao Technology Insider Buyers See Boost After Market Cap Rose HK$54m

Last week, China Ludao Technology Company Limited (HKG:2023) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 12% last week, resulting in a HK$54m increase in the company's market worth. Put another way, the original CN¥9.1m acquisition is now worth CN¥10m.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for China Ludao Technology

The Last 12 Months Of Insider Transactions At China Ludao Technology

The Executive Chairman & CEO Yuerong Yu made the biggest insider purchase in the last 12 months. That single transaction was for HK$2.0m worth of shares at a price of HK$0.89 each. We do like to see buying, but this purchase was made at well below the current price of HK$1.06. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Yuerong Yu purchased 9.83m shares over the year. The average price per share was HK$0.93. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

China Ludao Technology is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does China Ludao Technology Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. China Ludao Technology insiders own 51% of the company, currently worth about HK$267m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About China Ludao Technology Insiders?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest China Ludao Technology insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing China Ludao Technology. For example, China Ludao Technology has 4 warning signs (and 1 which can't be ignored) we think you should know about.

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.