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Co-Founder & Executive Chairman Siu Fai Ng Just Bought Shares In Jinhui Shipping and Transportation Limited (OB:JIN)

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 kr272k to buy stock, at kr6.34 per share. However, we do note that it only increased their holding by 0.9%, and it wasn't a huge purchase by absolute value, either.

Check out our latest analysis for Jinhui Shipping and Transportation

The Last 12 Months Of Insider Transactions At Jinhui Shipping and Transportation

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 even when the share price was higher than kr6.26 (the recent price), an insider wanted to purchase shares. 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. We always take careful note of the price insiders pay when purchasing shares. 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 shares in the last twelve months.

Siu Fai Ng purchased 224076 shares over the year. The average price per share was kr7.66. You can see the insider transactions (by 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!

OB:JIN Recent Insider Trading, December 10th 2019

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.

Insider Ownership of Jinhui Shipping and Transportation

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. Our data indicates that Jinhui Shipping and Transportation insiders own about kr38m worth of shares (which is 5.6% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Jinhui Shipping and Transportation Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Jinhui Shipping and Transportation shares, given these transactions (along with notable insider ownership of the company). If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.