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Trade Alert: The Chief Product Officer & Executive Director Of Mobvista Inc. (HKG:1860), Zikai Fang, Has Just Spent US$1.1m Buying Shares

Simply Wall St

Investors who take an interest in Mobvista Inc. (HKG:1860) should definitely note that the Chief Product Officer & Executive Director, Zikai Fang, recently paid US$3.83 per share to buy US$1.1m worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 19%.

Check out our latest analysis for Mobvista

Mobvista Insider Transactions Over The Last Year

Notably, that recent purchase by Zikai Fang is the biggest insider purchase of Mobvista shares that we've seen in the last year. That means that even when the share price was higher than HK$3.80 (the recent price), an insider wanted to purchase shares. 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. The only individual insider to buy over the last year was Zikai Fang.

You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

SEHK:1860 Recent Insider Trading, October 29th 2019

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

Insider Ownership of Mobvista

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own HK$12m worth of Mobvista stock, about 0.2% of the company. However, it's possible that insiders might have an indirect interest through a more complex structure. We prefer to see high levels of insider ownership.

So What Does This Data Suggest About Mobvista Insiders?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Mobvista we think they are probably pretty confident of a bright future. 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.

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.

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.

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. Thank you for reading.