Those following along with Yee Hop Holdings Limited (HKG:1662) will no doubt be intrigued by the recent purchase of shares by Mo Ming Chui, Executive Vice Chairman of the company, who spent a stonking HK$34m on stock at an average price of HK$1.25. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 22%.

Check out our latest analysis for Yee Hop Holdings

Yee Hop Holdings Insider Transactions Over The Last Year

Notably, that recent purchase by Mo Ming Chui is the biggest insider purchase of Yee Hop Holdings shares that we've seen in the last year. That means that even when the share price was higher than HK$1.19 (the recent price), an insider wanted to purchase shares. 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. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months insiders purchased 37.00m shares for HK$45m. But they sold 44.00m shares for HK$54m. Over the last year we saw more insider selling of Yee Hop Holdings shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Yee Hop Holdings better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership Of Yee Hop 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. Yee Hop Holdings insiders own 75% of the company, currently worth about HK$446m based on the recent share price. 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 Yee Hop Holdings Insider Transactions Indicate?

The stark truth for Yee Hop Holdings is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - Yee Hop Holdings has 3 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, 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.