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Tak On Cheung Is The Chairman of the Board of Directors of China Yongda Automobiles Services Holdings Limited (HKG:3669) And Just Spent CN¥7.9m On Shares

Those following along with China Yongda Automobiles Services Holdings Limited (HKG:3669) will no doubt be intrigued by the recent purchase of shares by Tak On Cheung, Chairman of the Board of Directors of the company, who spent a stonking HK$7.9m on stock at an average price of HK$7.93. 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 0.2%.

See our latest analysis for China Yongda Automobiles Services Holdings

China Yongda Automobiles Services Holdings Insider Transactions Over The Last Year

Notably, that recent purchase by Tak On Cheung is the biggest insider purchase of China Yongda Automobiles Services Holdings shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of HK$7.75. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays 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. Tak On Cheung was the only individual insider to buy during the last year.

Tak On Cheung bought a total of 2.50m shares over the year at an average price of HK$6.83. 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!

SEHK:3669 Recent Insider Trading May 27th 2020
SEHK:3669 Recent Insider Trading May 27th 2020

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 Yongda Automobiles Services Holdings

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that China Yongda Automobiles Services Holdings insiders own 40% of the company, worth about HK$5.7b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About China Yongda Automobiles Services Holdings Insiders?

It's certainly positive 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 China Yongda Automobiles Services Holdings. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of China Yongda Automobiles Services Holdings.

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.

Love or hate this article? Concerned about the content? Get in touch with us directly. Alternatively, email 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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Thank you for reading.

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