A HK$46m Market Cap Boost Pleasing ToYuzhou Group Holdings Insiders

Yuzhou Group Holdings Company Limited (HKG:1628) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 12%, resulting in a HK$46m rise in the company's market capitalisation, translating to a gain of 31% on their initial investment. Put another way, the original CN¥66.3m acquisition is now worth CN¥87.2m.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Yuzhou Group Holdings

The Founder & Non-Executive Director Lung On Lam made the biggest insider purchase in the last 12 months. That single transaction was for HK$33m worth of shares at a price of HK$0.035 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$0.046. 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.

Yuzhou Group Holdings insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for Yuzhou Group Holdings

Yuzhou Group Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Yuzhou Group Holdings Insiders Bought Stock Recently

Over the last quarter, Yuzhou Group Holdings insiders have spent a meaningful amount on shares. Overall, two insiders shelled out HK$66m for shares in the company -- and none sold. This makes one think the business has some good points.

Insider Ownership Of Yuzhou Group Holdings

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Yuzhou Group Holdings insiders own 63% of the company, worth about HK$266m. 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 Do The Yuzhou Group Holdings Insider Transactions Indicate?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Yuzhou Group Holdings. Looks promising! 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. Our analysis shows 5 warning signs for Yuzhou Group Holdings (3 don't sit too well with us!) and we strongly recommend you look at these before investing.

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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.