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We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Kaisun Holdings Limited (HKG:8203), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
See our latest analysis for Kaisun Holdings
The Last 12 Months Of Insider Transactions At Kaisun Holdings
Over the last year, we can see that the biggest insider purchase was by Xiongfeng Zhang for HK$788k worth of shares, at about HK$0.26 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$0.26). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Happily, we note that in the last year insiders bought 13.6m shares for a total of HK$5.0m. While Kaisun Holdings insiders bought shares last year, they didn't sell. The average buy price was around HK$0.36. I'd consider this a positive as it suggests insiders see value at around the current price. 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 always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Kaisun Holdings Insiders Bought Stock Recently
It's good to see that Kaisun Holdings insiders have made notable investments in the company's shares. Overall, two insiders shelled out HK$1.0m for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.