The Chairman & CEO of Ximei Resources Holding Limited (HKG:9936), Lijue Wu, Just Bought 30% More Shares

Ximei Resources Holding Limited (HKG:9936) shareholders (or potential shareholders) will be happy to see that the Chairman & CEO, Lijue Wu, recently bought a whopping HK$74m worth of stock, at a price of HK$1.56. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 30%.

View our latest analysis for Ximei Resources Holding

Ximei Resources Holding Insider Transactions Over The Last Year

Notably, that recent purchase by Lijue Wu is the biggest insider purchase of Ximei Resources Holding shares that we've seen in the last year. Even though the purchase was made at a significantly lower price than the recent price (HK$2.05), we still think insider buying is a positive. 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.

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!

Ximei Resources Holding is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Ximei Resources Holding Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Ximei Resources Holding insiders own 53% of the company, worth about HK$343m. 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 Ximei Resources Holding Insiders?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Ximei Resources Holding. Looks promising! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 3 warning signs for Ximei Resources Holding (of which 2 are a bit concerning!) you should know about.

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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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