Jiyi Holdings Limited (HKG:1495) shareholders (or potential shareholders) will be happy to see that the Executive Chairlady, Wei Hou, recently bought a whopping HK$24m worth of stock, at a price of HK$0.82. 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 5.8%.

See our latest analysis for Jiyi Holdings

Jiyi Holdings Insider Transactions Over The Last Year

In fact, the recent purchase by Executive Chairlady Wei Hou was not their only acquisition of Jiyi Holdings shares this year. They previously made an even bigger purchase of HK$29m worth of shares at a price of HK$0.60 per share. Even though the purchase was made at a significantly lower price than the recent price (HK$0.68), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Wei Hou bought a total of 77.43m shares over the year at an average price of HK$0.68. 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!

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

Does Jiyi Holdings Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Jiyi Holdings insiders own about HK$428m worth of shares (which is 61% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Jiyi Holdings Tell Us?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Jiyi Holdings insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 5 warning signs for Jiyi Holdings (of which 2 are concerning!) you should know about.

Of course Jiyi 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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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.