Whilst it may not be a huge deal, we thought it was good to see that the Xin Point Holdings Limited (HKG:1571) Chairman & CEO, Xiaoming Ma, recently bought HK$704k worth of stock, for HK$1.99 per share. However, we do note that it only increased their holding by 0.05%, and it wasn't a huge purchase by absolute value, either.
The Last 12 Months Of Insider Transactions At Xin Point Holdings
Notably, that recent purchase by Chairman & CEO Xiaoming Ma was not the only time they bought Xin Point Holdings shares this year. They previously made an even bigger purchase of HK$5.8m worth of shares at a price of HK$1.46 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$2.00. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Happily, we note that in the last year insiders paid HK$26m for 14.58m shares. On the other hand they divested 313000 shares, for HK$519k. In total, Xin Point Holdings insiders bought more than they sold over the last year. They paid about HK$1.77 on average. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Xin Point Holdings insiders own 73% of the company, currently worth about HK$1.5b based on the recent share price. 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 Xin Point Holdings Insiders?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Xin Point Holdings. Nice! I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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