Those following along with Jingrui Holdings Limited (HKG:1862) will no doubt be intrigued by the recent purchase of shares by Hao Yan, Co-Chairman & CEO of the company, who spent a stonking HK$45m on stock at an average price of HK$2.50. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 3.4%.
The Last 12 Months Of Insider Transactions At Jingrui Holdings
In fact, the recent purchase by Hao Yan was the biggest purchase of Jingrui Holdings shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of HK$2.55. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Jingrui Holdings insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was Hao Yan.
Hao Yan bought 21.00m shares over the last 12 months at an average price of HK$2.45. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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.
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. Jingrui Holdings insiders own 68% of the company, currently worth about HK$2.4b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Jingrui Holdings Tell Us?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Jingrui Holdings. Looks promising! Along with insider transactions, I recommend checking if Jingrui Holdings is growing revenue. This free chart of historic revenue and earnings should make that easy.
Of course Jingrui Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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 firstname.lastname@example.org. 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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