Potential Trans-China Automotive Holdings Limited (Catalist:VI2) shareholders may wish to note that the Executive Chairman & CEO, Francis Hanjoe Tjia, recently bought S$561k worth of stock, paying S$0.14 for each share. Although the purchase only increased their holding by 1.9%, it is still a solid purchase in our view.

Check out our latest analysis for Trans-China Automotive Holdings

The Last 12 Months Of Insider Transactions At Trans-China Automotive Holdings

In fact, the recent purchase by Executive Chairman & CEO Francis Hanjoe Tjia was not their only acquisition of Trans-China Automotive Holdings shares this year. They previously made an even bigger purchase of S$1.3m worth of shares at a price of S$0.18 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being S$0.15). 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. 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. Francis Hanjoe Tjia was the only individual insider to buy during the last year.

Francis Hanjoe Tjia purchased 34.22m shares over the year. The average price per share was S$0.18. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Trans-China Automotive Holdings 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 Trans-China Automotive Holdings

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. We usually like to see fairly high levels of insider ownership. Trans-China Automotive Holdings insiders own 44% of the company, currently worth about S$39m 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.

So What Do The Trans-China Automotive Holdings Insider Transactions Indicate?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Trans-China Automotive Holdings. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Trans-China Automotive Holdings has 5 warning signs (and 2 which are a bit concerning) we think you should know about.