Insider Buys Additional CN¥3.1m In Ming Yuan Cloud Group Holdings Stock

Potential Ming Yuan Cloud Group Holdings Limited (HKG:909) shareholders may wish to note that the VP & Executive Director, Xiaohui Chen, recently bought HK$3.1m worth of stock, paying HK$3.15 for each share. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.

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Ming Yuan Cloud Group Holdings Insider Transactions Over The Last Year

In fact, the recent purchase by VP & Executive Director Xiaohui Chen was not their only acquisition of Ming Yuan Cloud Group Holdings shares this year. Earlier in the year, they paid HK$2.44 per share in a HK$4.9m purchase. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$3.24. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Xiaohui Chen purchased 5.00m shares over the year. The average price per share was HK$2.80. 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 Ming Yuan Cloud Group Holdings

Ming Yuan Cloud 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.

Does Ming Yuan Cloud Group Holdings Boast High Insider Ownership?

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. We usually like to see fairly high levels of insider ownership. It's great to see that Ming Yuan Cloud Group Holdings insiders own 50% of the company, worth about HK$3.0b. 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 Does This Data Suggest About Ming Yuan Cloud Group Holdings Insiders?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Ming Yuan Cloud Group Holdings insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ming Yuan Cloud Group Holdings. Every company has risks, and we've spotted 1 warning sign for Ming Yuan Cloud Group Holdings you should know about.

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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.