Trade Alert: The Chairman of the Board of Directors Of China Yongda Automobiles Services Holdings Limited (HKG:3669), Tak On Cheung, Has Just Spent CN¥12m Buying A Few More Shares

Those following along with China Yongda Automobiles Services Holdings Limited (HKG:3669) will no doubt be intrigued by the recent purchase of shares by Tak On Cheung, Chairman of the Board of Directors of the company, who spent a stonking HK$12m on stock at an average price of HK$11.53. While that only increased their holding size by 0.2%, it is still a big swing by our standards.

Check out our latest analysis for China Yongda Automobiles Services Holdings

The Last 12 Months Of Insider Transactions At China Yongda Automobiles Services Holdings

In the last twelve months, the biggest single sale by an insider was when the VP & Executive Director, Yi Chen, sold HK$19m worth of shares at a price of HK$14.80 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It’s of some comfort that this sale was conducted at a price well above the current share price, which is HK$12.00. So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Yi Chen.

Over the last year, we can see that insiders have bought 4.20m shares worth HK$45m. But they sold 1.30m shares for HK$19m. Overall, China Yongda Automobiles Services Holdings insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Does China Yongda Automobiles Services Holdings Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. China Yongda Automobiles Services Holdings insiders own about HK$7.9b worth of shares (which is 33% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The China Yongda Automobiles Services Holdings Insider Transactions Indicate?

It’s certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest China Yongda Automobiles Services Holdings insiders are well aligned, and quite possibly think the share price is too low. Nice! 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. For example – China Yongda Automobiles Services Holdings has 3 warning signs we think you should be aware of.

If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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