Trade Alert: The Executive Director Of China Motor Bus Company, Limited (HKG:26), Michael John Moir, Has Just Spent HK$138k Buying 233% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the China Motor Bus Company, Limited (HKG:26) Executive Director, Michael John Moir, recently bought HK$138k worth of stock, for HK$98.21 per share. While that isn't the hugest buy, it actually boosted their shareholding by 233%, which is good to see.

View our latest analysis for China Motor Bus Company

China Motor Bus Company Insider Transactions Over The Last Year

In fact, the recent purchase by Michael John Moir was the biggest purchase of China Motor Bus Company shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is HK$98.30. 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. 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. Happily, the China Motor Bus Company insider decided to buy shares at close to current prices. Michael John Moir was the only individual insider to buy shares in the last twelve months.

Michael John Moir bought 2.00k shares over the last 12 months at an average price of HK$101. 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!

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 of China Motor Bus Company

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. China Motor Bus Company insiders own 44% of the company, currently worth about HK$2.0b 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.

So What Do The China Motor Bus Company Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about China Motor Bus Company. That's what I like to see! 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. In terms of investment risks, we've identified 2 warning signs with China Motor Bus Company and understanding them should be part of your investment process.

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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