Those following along with Jiumaojiu International Holdings Limited (HKG:9922) will no doubt be intrigued by the recent purchase of shares by Yihong Guan, Chairman & CEO of the company, who spent a stonking HK$14m on stock at an average price of HK$5.38. While that only increased their holding size by 0.5%, it is still a big swing by our standards.
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The Last 12 Months Of Insider Transactions At Jiumaojiu International Holdings
In fact, the recent purchase by Yihong Guan was the biggest purchase of Jiumaojiu International Holdings shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of HK$5.53 per share to be enticing. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.
In the last twelve months Jiumaojiu International Holdings insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Jiumaojiu International Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Jiumaojiu International Holdings 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Jiumaojiu International Holdings insiders own 38% of the company, worth about HK$3.0b. 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 Jiumaojiu International Holdings Insiders?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Jiumaojiu International Holdings. Nice! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course Jiumaojiu International 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.