Zhong Yuan Li Is The Chairman of the Board of Pan Asia Data Holdings Inc. (HKG:1561) And They Just Picked Up 138% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Pan Asia Data Holdings Inc. (HKG:1561) Chairman of the Board, Zhong Yuan Li, recently bought HK$169k worth of stock, for HK$1.17 per share. Even though that isn't a massive buy, it did increase their holding by 138%, which is arguably a good sign.

View our latest analysis for Pan Asia Data Holdings

The Last 12 Months Of Insider Transactions At Pan Asia Data Holdings

Notably, that recent purchase by Zhong Yuan Li is the biggest insider purchase of Pan Asia Data Holdings shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is HK$1.20. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Pan Asia Data Holdings insider decided to buy shares at close to current prices. Zhong Yuan Li was the only individual insider to buy during the last year.

Zhong Yuan Li bought a total of 248.00k shares over the year at an average price of HK$1.23. 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).

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. From what we can see in our data, insiders own only about HK$2.7m worth of Pan Asia Data Holdings shares. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. It's always possible we are missing something but from our data, it looks like insider ownership is minimal.

So What Does This Data Suggest About Pan Asia Data Holdings Insiders?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Pan Asia Data Holdings insiders are reasonably well aligned, and optimistic for the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To that end, you should learn about the 4 warning signs we've spotted with Pan Asia Data Holdings (including 1 which doesn't sit too well with us).

But note: Pan Asia Data Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, but not derivative transactions.

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