It is commonly known that insider buying, management purchasing stock in the own firm, is an optimistic signal. Insiders have valuable insights into the company’s current operations and opportunities, so they are best placed to benefit from a timely, and legal, trade. Though it is certainly not enough to base your investment decision merely on these signals alone, below I’ve put together three stocks you should examine further.
China BlueChemical Ltd., together with its subsidiaries, develops, manufactures, and sells mineral fertilizers and chemical products in the People’s Republic of China and internationally. Founded in 2000, and currently run by Qinglong Xia, the company employs 5,647 people and with the company’s market cap sitting at HKD HK$11.53B, it falls under the large-cap category.
China BlueChemical Ltd’s (SEHK:3983) insiders have invested more than 16 million shares in the large-cap stocks within the past three months. In total, individual insiders own
The entity that bought on the open market in the last three months was
Colonial First State Asset Management (Australia) Limited. Although this is an institutional investor, rather than a company executive or board member, the insights gained from direct access to management as a large investor would make it more well-informed than the average retail investor. In this specific instance, I would classify this investor as a company insider.
With a relatively flat top-line forecasted for the upcoming year, but a robust earnings growth rate of 231.94%, insiders may have strong conviction in management’s cost initiatives moving forward. This underlying driver of growth could be one of the reasons why insiders have bought more shares over the past couple of months. Continue research on China BlueChemical here.
SEHK:3983 Insider_trading Feb 21st 18
China National Building Material Company Limited (SEHK:3323)
China National Building Material Company Limited, an investment holding company, engages in the cement, lightweight building material, glass fiber, composite material, and engineering service businesses. Started in 2005, and headed by CEO Jianglin Cao, the company size now stands at 110,143 people and with the stock’s market cap sitting at HKD HK$40.49B, it comes under the large-cap category.
China National Building Material Company Limited (SEHK:3323) is one of China’s large-cap stocks that saw some insider buying over the past three months, with insiders investing in more than 16 million shares during this period. In total, individual insiders own
The entity that bought on the open market in the last three months was
JPMorgan Chase & Co Brokerage and Securities Investments. Although this is an institutional investor, rather than a company executive or board member, the insights gained from direct access to management as a large investor would make it more well-informed than the average retail investor. In this specific instance, I would classify this investor as a company insider.
Analysts anticipate a relatively flat top-line growth next year, however, earnings are predicted to grow at an impressive rate of 77.83% which could indicate the company’s cost controls will show meaningful results, offsetting the slow revenue growth. Insiders may have confidence in these cost initiatives, or believe the market has overly penalized the company’s shares, leading to an opportune time to buy. More detail on China National Building Material here.
SEHK:3323 Insider_trading Feb 21st 18
China Shineway Pharmaceutical Group Limited (SEHK:2877)
China Shineway Pharmaceutical Group Limited, an investment holding company, engages in the research, development, manufacture, and trading of Chinese medicines in the People’s Republic of China. The company currently employs 3628 people and with the company’s market capitalisation at HKD HK$10.16B, we can put it in the large-cap stocks category.
China Shineway Pharmaceutical Group Limited (SEHK:2877) is one of China’s large-cap stocks that saw some insider buying over the past three months, with insiders investing in more than 2 million shares during this period. In total, individual insiders own over 550 million shares in the business, which makes up around 66.56% of total shares outstanding.
Insiders that have recently bought more shares are: Huimin Li (management and board member) . and Zhenjiang Li (management and board member) .
With revenues predicted to grow at 12.76% each year for the next couple of years, driving an impressive earnings growth of 12.65%, insiders may be buying based on 2877’s optimistic outlook which they believe are not yet priced into the stock. More on China Shineway Pharmaceutical Group here.
SEHK:2877 Insider_trading Feb 21st 18
For more stocks with high, positive trading volume by insiders, take a look at our free platform to explore the interactive list of stocks with recent insider buying. To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
