Insider Buying: The Jingrui Holdings Limited (HKG:1862) Co-Chairman & CEO Just Bought CN¥4.3m Worth Of Shares

Those following along with Jingrui Holdings Limited (HKG:1862) will no doubt be intrigued by the recent purchase of shares by Hao Yan, Co-Chairman & CEO of the company, who spent a stonking HK$4.3m on stock at an average price of HK$2.15. While that only increased their holding size by 0.3%, it is still a big swing by our standards.

See our latest analysis for Jingrui Holdings

The Last 12 Months Of Insider Transactions At Jingrui Holdings

In fact, the recent purchase by Co-Chairman & CEO Hao Yan was not their only acquisition of Jingrui Holdings shares this year. They previously made an even bigger purchase of HK$95m worth of shares at a price of HK$2.10 per share. That means that an insider was happy to buy shares at around the current price of HK$2.40. Of course they may have changed their mind. But this suggests they are optimistic. 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 Jingrui Holdings share holders is that an insider was buying at near the current price. Hao Yan was the only individual insider to buy shares in the last twelve months.

Hao Yan bought 73.57m shares over the last 12 months at an average price of HK$2.10. 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!

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Jingrui Holdings insiders own 68% of the company, currently worth about HK$2.3b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Jingrui Holdings Insiders?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Jingrui Holdings. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Jingrui Holdings. At Simply Wall St, we've found that Jingrui Holdings has 5 warning signs (1 doesn't sit too well with us!) that deserve your attention before going any further with your analysis.

But note: Jingrui 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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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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