Investors who take an interest in China Electronics Optics Valley Union Holding Company Limited (HKG:798) should definitely note that the Executive Chairman & President, Liping Huang, recently paid HK$0.48 per share to buy HK$1.1m worth of the stock. Although the purchase only increased their holding by 0.1%, it is still a solid purchase in our view.
China Electronics Optics Valley Union Holding Insider Transactions Over The Last Year
In fact, the recent purchase by Executive Chairman & President Liping Huang was not their only acquisition of China Electronics Optics Valley Union Holding shares this year. Earlier in the year, they paid HK$0.59 per share in a HK$2.4m purchase. That means that an insider was happy to buy shares at above the current price of HK$0.51. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months China Electronics Optics Valley Union Holding insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
China Electronics Optics Valley Union Holding 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 China Electronics Optics Valley Union Holding
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. China Electronics Optics Valley Union Holding insiders own about HK$958m worth of shares (which is 26% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About China Electronics Optics Valley Union Holding Insiders?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest China Electronics Optics Valley Union Holding insiders are well aligned, and quite possibly think the share price is too low. Looks promising! Along with insider transactions, I recommend checking if China Electronics Optics Valley Union Holding is growing revenue. This free chart of historic revenue and earnings should make that easy.
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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.