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Insider Buying: The Country Garden Services Holdings Company Limited (HKG:6098) Non-Executive Chairman Just Bought CN¥128m Worth Of Shares

Simply Wall St ·  Jul 27, 2022 19:00

Those following along with Country Garden Services Holdings Company Limited (HKG:6098) will no doubt be intrigued by the recent purchase of shares by Huiyan Yang, Non-Executive Chairman of the company, who spent a stonking HK$128m on stock at an average price of HK$30.30. While that only increased their holding size by 0.3%, it is still a big swing by our standards.

Check out our latest analysis for Country Garden Services Holdings

Country Garden Services Holdings Insider Transactions Over The Last Year

In fact, the recent purchase by Huiyan Yang was the biggest purchase of Country Garden Services Holdings shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of HK$17.44. 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 if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Happily, we note that in the last year insiders paid HK$246m for 6.51m shares. On the other hand they divested 3.67m shares, for HK$211m. Overall, Country Garden Services Holdings insiders were net buyers during the last year. The average buy price was around HK$37.84. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volumeSEHK:6098 Insider Trading Volume July 27th 2022

Country Garden Services Holdings 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 Country Garden Services 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Country Garden Services Holdings insiders own about HK$26b worth of shares (which is 43% of the company). 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 Country Garden Services Holdings Insiders?

The recent insider purchases are 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 Country Garden Services Holdings. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Country Garden Services Holdings. Case in point: We've spotted 2 warning signs for Country Garden Services Holdings you should be aware of, and 1 of them is a bit concerning.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

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