Bullish Many Idea Cloud Holdings Insiders Loaded Up On CN¥65.5m Of Stock

Over the last year, a good number of insiders have significantly increased their holdings in Many Idea Cloud Holdings Limited (HKG:6696). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Many Idea Cloud Holdings

Many Idea Cloud Holdings Insider Transactions Over The Last Year

The CEO & Chairman of the Board Jianhui Liu made the biggest insider purchase in the last 12 months. That single transaction was for HK$45m worth of shares at a price of HK$0.15 each. We do like to see buying, but this purchase was made at well below the current price of HK$0.18. 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.

While Many Idea Cloud Holdings insiders bought shares during the last year, they didn't sell. The average buy price was around HK$0.17. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. 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. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insiders At Many Idea Cloud Holdings Have Bought Stock Recently

It's good to see that Many Idea Cloud Holdings insiders have made notable investments in the company's shares. Specifically, insider Wenwen Wang bought HK$20m worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.

Insider Ownership Of Many Idea Cloud Holdings

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Many Idea Cloud Holdings insiders own 40% of the company, currently worth about HK$97m 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.

What Might The Insider Transactions At Many Idea Cloud Holdings Tell Us?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Many Idea Cloud Holdings. Nice! While it's good to be aware of 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. For example, Many Idea Cloud Holdings has 5 warning signs (and 2 which shouldn't be ignored) we think 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 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.