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The Co-Founder & Executive Chairman of Jinhui Shipping and Transportation Limited (OB:JIN), Siu Fai Ng, Just Bought 1.8% More Shares

Simply Wall St

Even if it's not a huge purchase, we think it was good to see that Siu Fai Ng, the Co-Founder & Executive Chairman of Jinhui Shipping and Transportation Limited (OB:JIN) recently shelled out kr308k to buy stock, at kr3.52 per share. However, we do note that it only increased their holding by 1.8%, and it wasn't a huge purchase by absolute value, either.

Check out our latest analysis for Jinhui Shipping and Transportation

Jinhui Shipping and Transportation Insider Transactions Over The Last Year

Notably, that recent purchase by Co-Founder & Executive Chairman Siu Fai Ng was not the only time they bought Jinhui Shipping and Transportation shares this year. Earlier in the year, they paid kr8.23 per share in a kr378k purchase. That means that an insider was happy to buy shares at above the current price of kr3.57. 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. To us, it's very important to consider the price insiders pay for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Siu Fai Ng was the only individual insider to buy over the year.

Siu Fai Ng purchased 292.86k shares over the year. The average price per share was kr6.38. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

OB:JIN Recent Insider Trading March 26th 2020

Jinhui Shipping and Transportation is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Jinhui Shipping and Transportation 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. Our data indicates that Jinhui Shipping and Transportation insiders own about kr22m worth of shares (which is 5.6% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Jinhui Shipping and Transportation Tell Us?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Jinhui Shipping and Transportation insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Jinhui Shipping and Transportation. To help with this, we've discovered 5 warning signs (2 are a bit concerning!) that you ought to be aware of before buying any shares in Jinhui Shipping and Transportation.

But note: Jinhui Shipping and Transportation may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.