Potential Huazhong In-Vehicle Holdings Company Limited (HKG:6830) shareholders may wish to note that the Chairman & CEO, Minfeng Zhou, recently bought HK$2.3m worth of stock, paying HK$2.59 for each share. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.
View our latest analysis for Huazhong In-Vehicle Holdings
The Last 12 Months Of Insider Transactions At Huazhong In-Vehicle Holdings
In fact, the recent purchase by Minfeng Zhou was the biggest purchase of Huazhong In-Vehicle 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$2.36. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Minfeng Zhou.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of Huazhong In-Vehicle Holdings
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Huazhong In-Vehicle Holdings insiders own 75% of the company, currently worth about HK$3.1b based on the recent share price. 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 Huazhong In-Vehicle Holdings Insiders?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Huazhong In-Vehicle Holdings. That's what I like to see! 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. When we did our research, we found 2 warning signs for Huazhong In-Vehicle Holdings (1 makes us a bit uncomfortable!) that we believe deserve your full attention.
Of course Huazhong In-Vehicle 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 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.