One BYD Electronic (International) Company Limited (HKG:285) insider upped their stake in the previous year

By
Simply Wall St
Published
August 16, 2021
SEHK:285
Source: Shutterstock

Viewing insider transactions for BYD Electronic (International) Company Limited's (HKG:285 ) over the last year, we see that insiders were net buyers. This means that a larger number of shares were purchased by insiders in relation to shares sold.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for BYD Electronic (International)

BYD Electronic (International) Insider Transactions Over The Last Year

There wasn't any very large single transaction over the last year, but we can still observe some trading.

Jing-Jie Qian bought a total of 5.00k shares over the year at an average price of HK$37.86. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
SEHK:285 Insider Trading Volume August 16th 2021

BYD Electronic (International) is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.4% of BYD Electronic (International) shares, worth about HK$332m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At BYD Electronic (International) Tell Us?

The fact that there have been no BYD Electronic (International) insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like BYD Electronic (International) insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, BYD Electronic (International) has 2 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.

But note: BYD Electronic (International) 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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