Potential Yihai International Holding Ltd. (HKG:1579) Shareholders may note that CEO and Executive Director Qiang Guo recently purchased HK$1.8 million worth of shares, paying HK$19.55 for each share. It’s a very decent buy in our eyes and it increased their stake by a solid 22%.
If you’re not interested in researching 1579’s insider trades, we have a free list of interesting investment ideas to potentially inspire your next investment!
Yihai International holds insider trading over the past year
Notably, this recent purchase by Qiang Guo is the largest insider purchase of Yihai International Holding shares we have seen in the past year. This means that an insider was happy to buy shares above the current price of HK$17.54. It is very possible that they regret the purchase, but it is more likely that they are optimistic about the company. For us, it is very important to consider the price that insiders pay for the shares. Generally speaking, it catches our attention when an insider has bought stocks at prices higher than the current price, because it suggests that they thought the stock was worth buying, even at a higher price. The only individual insider to buy in the past year was Qiang Guo.
Qiang Guo bought 100,000 shares during the year. The average price per share was HK$19.58. You can see insider trading (by companies and individuals) over the past year illustrated in the table below. If you click on the chart, you can see all individual trades including stock price, individual and date!
There are always plenty of stocks that insiders are buying. So if it suits your style you can check each stock one by one or you can take a look at this free list of companies. (Hint: insiders bought them).
Does Yihai International Holding boast of high insider ownership?
Another way to test alignment between a company’s executives and other shareholders is to look at how many shares they own. I think it’s a good sign if insiders have a significant number of shares in the company. Insiders of Yihai International Holding own 47% of the company, which is currently worth around HK$8.0 billion based on recent share price. This type of significant insider ownership generally increases the chances that the company will be run in the best interests of all shareholders.
So what does this data suggest about Yihai International Holding insiders?
The recent insider buying is encouraging. We also rely on the longer-term picture of insider trading. Along with strong insider ownership, this analysis suggests that insiders are quite optimistic about Yihai International Holding. Sounds promising! Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Yihai International Holding.
Sure Yihai International 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.
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