Even if it's not a huge purchase, we think it was good to see that Xiaoying Feng, the CFO, Joint Company Secretary & Executive Director of Yidu Tech Inc. (HKG:2158) recently shelled out HK$765k to buy stock, at HK$4.20 per share. Even though that isn't a massive buy, it did increase their holding by 86%, which is arguably a good sign.

Check out our latest analysis for Yidu Tech

The Last 12 Months Of Insider Transactions At Yidu Tech

In fact, the recent purchase by Xiaoying Feng was the biggest purchase of Yidu Tech shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than HK$3.88 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Xiaoying Feng was the only individual insider to buy shares in the last twelve months.

Xiaoying Feng purchased 350.00k shares over the year. The average price per share was HK$4.18. 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!

Yidu Tech is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership Of Yidu Tech

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Yidu Tech insiders own 40% of the company, worth about HK$1.6b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Yidu Tech Tell Us?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Yidu Tech. 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. For example - Yidu Tech has 2 warning signs we think you should be aware of.

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 of direct interests only, but not derivative transactions or indirect interests.

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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.