Insider Stock Buying Reaches HK$169.4m On Vinda International Holdings

Over the last year, a good number of insiders have significantly increased their holdings in Vinda International Holdings Limited (HKG:3331). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Vinda International Holdings

The Last 12 Months Of Insider Transactions At Vinda International Holdings

Over the last year, we can see that the biggest insider purchase was by insider Tanoto Belinda for HK$115m worth of shares, at about HK$19.03 per share. So it's clear an insider wanted to buy, at around the current price, which is HK$19.68. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. The good news for Vinda International Holdings share holders is that insiders were buying at near the current price.

Vinda International Holdings insiders may have bought shares in the last year, but they didn't sell any. 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!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Vinda International Holdings Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Vinda International Holdings. We can see that insider Tanoto Belinda paid HK$166m for shares in the company. No-one sold. This could be interpreted as suggesting a positive outlook.

Insider Ownership Of Vinda International Holdings

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. Vinda International Holdings insiders own 7.2% of the company, currently worth about HK$1.7b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Vinda International Holdings Insiders?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Vinda International Holdings 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 Vinda International Holdings. At Simply Wall St, we've found that Vinda International Holdings has 2 warning signs (1 is a bit concerning!) that deserve your attention before going any further with your analysis.

Of course Vinda International 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.