Investors who take an interest in China VAST Industrial Urban Development Company Limited (HKG:6166) should definitely note that the Non-Executive Director, Ying Zhao, recently paid CN¥3.00 per share to buy CN¥3.0m worth of the stock. Although the purchase only increased their holding by 0.08%, it is still a solid purchase in our view.
The Last 12 Months Of Insider Transactions At China VAST Industrial Urban Development
Notably, that recent purchase by Non-Executive Director Ying Zhao was not the only time they bought China VAST Industrial Urban Development shares this year. Earlier in the year, they paid HK$3.27 per share in a HK$3.9m purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$2.99). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months China VAST Industrial Urban Development insiders were buying shares, but not selling. 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.
Insider Ownership of China VAST Industrial Urban Development
Many investors like to check how much of a company is owned by 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. China VAST Industrial Urban Development insiders own 73% of the company, currently worth about HK$3.6b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About China VAST Industrial Urban Development Insiders?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about China VAST Industrial Urban Development. Looks promising! I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow for free.
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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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. Thank you for reading.