Potential China CITIC Bank Corporation Limited (HKG:998) shareholders may wish to note that the VP & Executive Director, Danghuai Guo, recently bought HK$2.0m worth of stock, paying HK$3.72 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 85%, potentially signalling some real optimism.

View our latest analysis for China CITIC Bank

The Last 12 Months Of Insider Transactions At China CITIC Bank

Notably, that recent purchase by Danghuai Guo is the biggest insider purchase of China CITIC Bank shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is HK$3.80. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the China CITIC Bank insiders decided to buy shares at close to current prices.

In the last twelve months China CITIC Bank insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

China CITIC Bank is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does China CITIC Bank Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From looking at our data, insiders own HK$35m worth of China CITIC Bank stock, about 0.01% of the company. But they may have an indirect interest through a corporate structure that we haven't picked up on. We consider this fairly low insider ownership.

So What Do The China CITIC Bank Insider Transactions Indicate?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of China CITIC Bank we think they are probably pretty confident of a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 2 warning signs for China CITIC Bank (of which 1 can't be ignored!) you should know about.

But note: China CITIC Bank may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.