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Trade Alert: The Chairman & CEO Of VSTECS Holdings Limited (HKG:856), Jialin Li, Has Just Spent HK$11m Buying Shares

Simply Wall St

VSTECS Holdings Limited (HKG:856) shareholders (or potential shareholders) will be happy to see that the Chairman & CEO, Jialin Li, recently bought a whopping HK$11m worth of stock, at a price of HK$3.94. 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 0.7%.

See our latest analysis for VSTECS Holdings

VSTECS Holdings Insider Transactions Over The Last Year

Notably, that recent purchase by Jialin Li is the biggest insider purchase of VSTECS Holdings shares that we've seen in the last year. That implies that an insider found the current price of HK$4.18 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the VSTECS Holdings insider decided to buy shares at close to current prices. Jialin Li was the only individual insider to buy shares in the last twelve months.

Jialin Li purchased 6.01m shares over the year. The average price per share was HK$4.04. 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!

SEHK:856 Recent Insider Trading, January 16th 2020

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of VSTECS Holdings

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. VSTECS Holdings insiders own 41% of the company, currently worth about HK$2.4b 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.

What Might The Insider Transactions At VSTECS Holdings Tell Us?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest VSTECS Holdings insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! 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.

Of course VSTECS 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 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.