Last week, Xinyi Electric Storage Holdings Limited (HKG:8328) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 17% last week, resulting in a HK$478m increase in the company's market worth. In other words, the original HK$11m purchase is now worth HK$13m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Xinyi Electric Storage Holdings

Xinyi Electric Storage Holdings Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Non-Executive Chairman of the Board Ching Sai Tung bought HK$5.0m worth of shares at a price of HK$4.09 per share. Even though the purchase was made at a significantly lower price than the recent price (HK$4.65), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Xinyi Electric Storage Holdings insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Xinyi Electric Storage Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Xinyi Electric Storage Holdings Insiders Bought Stock Recently

Over the last quarter, Xinyi Electric Storage Holdings insiders have spent a meaningful amount on shares. Overall, two insiders shelled out HK$6.2m for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.

Insider Ownership of Xinyi Electric Storage Holdings

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Xinyi Electric Storage Holdings insiders own 71% of the company, worth about HK$2.3b. 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 Do The Xinyi Electric Storage Holdings Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Xinyi Electric Storage Holdings. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Xinyi Electric Storage Holdings. In terms of investment risks, we've identified 1 warning sign with Xinyi Electric Storage Holdings and understanding it should be part of your investment process.

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, but not derivative transactions.

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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.