Stock Analysis

Insiders who purchased Tian Yuan Group Holdings Limited (HKG:6119) earlier this year lose an additional CN¥126k as the stock sinks to HK$0.33

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Insiders who acquired CN¥720k worth of Tian Yuan Group Holdings Limited's (HKG:6119) stock at an average price of CN¥0.40 in the past 12 months may be dismayed by the recent 12% price decline. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth CN¥594k which is not ideal.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Tian Yuan Group Holdings

Tian Yuan Group Holdings Insider Transactions Over The Last Year

The insider Yongcheng Huang made the biggest insider purchase in the last 12 months. That single transaction was for HK$720k worth of shares at a price of HK$0.40 each. That means that an insider was happy to buy shares at above the current price of HK$0.33. 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. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Yongcheng Huang was the only individual insider to buy during the last year.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

SEHK:6119 Insider Trading Volume March 17th 2023

Tian Yuan Group Holdings 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 Of Tian Yuan Group Holdings

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. Tian Yuan Group Holdings insiders own 80% of the company, currently worth about HK$159m 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 Does This Data Suggest About Tian Yuan Group Holdings Insiders?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Tian Yuan Group Holdings. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tian Yuan Group Holdings. For example - Tian Yuan Group Holdings has 2 warning signs we think you should be aware of.

Of course Tian Yuan Group Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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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