Insider Buying: The Xi'an Haitian Antenna Technologies Co., Ltd. (HKG:8227) Vice Chairman Just Bought 3.1% More Shares

Even if it's not a huge purchase, we think it was good to see that Ji Chen, the Vice Chairman of Xi'an Haitian Antenna Technologies Co., Ltd. (HKG:8227) recently shelled out HK$319k to buy stock, at HK$1.06 per share. Although the purchase is not a big one, increasing their shareholding by only 3.1%, it can be interpreted as a good sign.

See our latest analysis for Xi'an Haitian Antenna Technologies

Xi'an Haitian Antenna Technologies Insider Transactions Over The Last Year

In fact, the recent purchase by Ji Chen was the biggest purchase of Xi'an Haitian Antenna Technologies shares made by an insider individual in the last twelve months, according to our records. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$1.68. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

The chart below shows insider transactions (by companies and individuals) over the last year. 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).

Does Xi'an Haitian Antenna Technologies Boast High 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. It appears that Xi'an Haitian Antenna Technologies insiders own 10% of the company, worth about HK$323m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Xi'an Haitian Antenna Technologies Tell Us?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Xi'an Haitian Antenna Technologies insiders are well aligned, and quite possibly think the share price is too low. Looks promising! 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. Case in point: We've spotted 3 warning signs for Xi'an Haitian Antenna Technologies you should be aware of, and 2 of them are concerning.

But note: Xi'an Haitian Antenna Technologies 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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