The recent price drop of 8.9% in Yangzijiang Financial Holding Ltd. (SGX:YF8) The shares may have disappointed insiders who bought S$552,000 worth of shares at an average price of S$0.52 over the past 12 months. Insiders buy in the expectation that their investments will appreciate in value over a period of time. However, recent losses have made their investment above worth S$382,000, which is less than ideal.
While insider trading isn’t the most important thing when it comes to long-term investing, logic dictates that you should pay attention to whether insiders are buying or selling stocks.
Check out our latest analysis for Yangzijiang Financial Holding
Yangzijiang Financial Holding Insider Trading Over the Last Year
CEO, Group CIO and Executive Director Teow Heng Toe has made the biggest insider buy in the past 12 months. This single transaction involved S$228,000 worth of shares at a price of S$0.57 each. It is therefore clear that an insider wanted to buy, even at a price higher than the current share price (ie S$0.36). Their perspective may have changed since then, but it at least shows that they were feeling optimistic at the time. For us, it is very important to consider the price that insiders pay for the shares. It is generally more encouraging if they paid above the current price, as this suggests that they perceived value even at higher levels.
While Yangzijiang Financial Holding insiders have bought shares over the past year, they have not sold. You can see a visual representation of insider trading (by companies and individuals) over the past 12 months, below. If you click on the chart, you can see all individual trades including stock price, individual and date!
There are many other companies whose insiders buy shares. You probably do not want to miss this free list of growing companies insiders are buying.
Yangzijiang Financial Holding insiders recently bought shares
It’s good to see that Yangzijiang Financial Holding insiders have made notable investments in the company’s stock. Senior independent non-executive director Sutat Chew spent S$86,000 on shares, and there were no sales. This suggests that the company has good points.
Many investors like to check how much a company is owned by insiders. I think it’s a good sign if insiders have a significant number of shares in the company. From what we can see in our data, insiders only own about S$540,000 worth of Yangzijiang Financial Holding shares. But they may have an indirect interest through a corporate structure that we have not noted. This level of insider ownership is particularly low and discouraging.
So what do Yangzijiang Financial Holding’s insider trading indicate?
It is certainly positive to see the recent insider buying. And longer-term insider trading also gives us confidence. We would certainly prefer to see higher levels of insider ownership, but insider trading analysis suggests that Yangzijiang Financial Holding insiders are expecting a bright future. Sure, the future is what matters most. So if you are interested in Yangzijiang Financial Holding, you should check this free analyst forecast report for the company.
Sure Yangzijiang Financial Holding may not be the best stock to buy. So you might want to see this free set of high quality companies.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.