Potential China Ludao Technology Company Limited (HKG:2023) shareholders may wish to note that the Executive Chairman & CEO, Yuerong Yu, recently bought CN¥2.0m worth of stock, paying CN¥1.00 for each share. Although the purchase only increased their holding by 0.9%, it is still a solid purchase in our view.
China Ludao Technology Insider Transactions Over The Last Year
Notably, that recent purchase by Yuerong Yu is the biggest insider purchase of China Ludao Technology shares that we've seen in the last year. That means that even when the share price was higher than HK$0.99 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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. Yuerong Yu was the only individual insider to buy shares in the last twelve months.
Yuerong Yu purchased 4392000 shares over the year. The average price per share was HK$1.07. 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!
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.
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. It's great to see that China Ludao Technology insiders own 46% of the company, worth about HK$215m. 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 China Ludao Technology Tell Us?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest China Ludao Technology insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! 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 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. Thank you for reading.