Yuxing InfoTech Investment Holdings Limited (HKG:8005) shareholders (or potential shareholders) will be happy to see that insider Yu Cong recently bought a whopping HK$50m worth of stock, at a price of HK$0.20. That increased their holding by a full 125%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.
See our latest analysis for Yuxing InfoTech Investment Holdings
The Last 12 Months Of Insider Transactions At Yuxing InfoTech Investment Holdings
In fact, the recent purchase by insider Yu Cong was not their only acquisition of Yuxing InfoTech Investment Holdings shares this year. They previously made an even bigger purchase of HK$67m worth of shares at a price of HK$0.33 per share. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being HK$0.30). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months insiders purchased 614.62m shares for HK$150m. But they sold 200.00m shares for HK$67m. Overall, Yuxing InfoTech Investment Holdings insiders were net buyers during the last year. They paid about HK$0.24 on average. It’s great to see insiders putting their own cash into the company’s stock, albeit at below the recent share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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 Yuxing InfoTech Investment 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. Insiders own 27% of Yuxing InfoTech Investment Holdings shares, worth about HK$193m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Yuxing InfoTech Investment Holdings Tell Us?
It’s certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Yuxing InfoTech Investment Holdings insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! 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. To help with this, we’ve discovered 4 warning signs (1 is significant!) that you ought to be aware of before buying any shares in Yuxing InfoTech Investment Holdings.
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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