Potential China Everbright Limited (HKG:165) shareholders may wish to note that the CEO & Executive Director, Wei Zhao, recently bought HK$2.2m worth of stock, paying HK$11.44 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 81%.

View our latest analysis for China Everbright

The Last 12 Months Of Insider Transactions At China Everbright

Notably, that recent purchase by Wei Zhao is the biggest insider purchase of China Everbright shares that we've seen in the last year. That implies that an insider found the current price of HK$11.84 per share to be enticing. 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. 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 China Everbright insiders decided to buy shares at close to current prices.

Over the last year, we can see that insiders have bought 850728 shares worth HK$9.7m. But insiders sold 50000 shares worth HK$728k. In the last twelve months there was more buying than selling by China Everbright insiders. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

China Everbright 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 Everbright

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From looking at our data, insiders own HK$19m worth of China Everbright stock, about 0.1% of the company. However, it's possible that insiders might have an indirect interest through a more complex structure. We consider this fairly low insider ownership.

What Might The Insider Transactions At China Everbright Tell Us?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of China Everbright we think they are probably pretty confident of a bright future. Of course, the future is what matters most. So if you are interested in China Everbright, you should check out this free report on analyst forecasts for the company.

Of course China Everbright 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.

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.