Xinyi Electric Storage Holdings Limited (HKG:8328) shareholders (or potential shareholders) will be happy to see that the Non-Executive Chairman of the Board, Ching Sai Tung, recently bought a whopping HK$201m worth of stock, at a price of HK$5.52. 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 10.0%.

View our latest analysis for Xinyi Electric Storage Holdings

The Last 12 Months Of Insider Transactions At Xinyi Electric Storage Holdings

In fact, the recent purchase by Ching Sai Tung was the biggest purchase of Xinyi Electric Storage Holdings shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of HK$5.71 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. Happily, the Xinyi Electric Storage Holdings insiders decided to buy shares at close to current prices.

While Xinyi Electric Storage Holdings insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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).

Insider Ownership Of Xinyi Electric Storage Holdings

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Xinyi Electric Storage Holdings insiders own about HK$2.9b worth of shares (which is 71% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Xinyi Electric Storage Holdings Insider Transactions Indicate?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Xinyi Electric Storage Holdings. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Xinyi Electric Storage Holdings has 3 warning signs (1 doesn't sit too well with us!) that deserve your attention before going any further with your analysis.

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.