Xiaohui Chen Buys Handful Of Shares In Ming Yuan Cloud Group Holdings

Those following along with Ming Yuan Cloud Group Holdings Limited (HKG:909) will no doubt be intrigued by the recent purchase of shares by Xiaohui Chen, VP & Executive Director of the company, who spent a stonking HK$4.9m on stock at an average price of HK$2.44. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 0.8%.

Check out our latest analysis for Ming Yuan Cloud Group Holdings

The Last 12 Months Of Insider Transactions At Ming Yuan Cloud Group Holdings

Notably, that recent purchase by Xiaohui Chen is the biggest insider purchase of Ming Yuan Cloud Group Holdings shares that we've seen in the last year. That implies that an insider found the current price of HK$2.56 per share to be enticing. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Ming Yuan Cloud Group Holdings share holders is that insiders were buying at near the current price.

While Ming Yuan Cloud Group Holdings insiders bought shares during the last year, they didn't sell. Their average price was about HK$2.19. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of Ming Yuan Cloud Group Holdings

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Ming Yuan Cloud Group Holdings insiders own 49% of the company, currently worth about HK$2.3b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Ming Yuan Cloud Group Holdings Insider Transactions Indicate?

The recent insider purchase is heartening. 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. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Ming Yuan Cloud Group Holdings. Looks promising! Of course, the future is what matters most. So if you are interested in Ming Yuan Cloud Group Holdings, you should check out this free report on analyst forecasts for the company.

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.