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Even if it's not a huge purchase, we think it was good to see that Baohua Kang, the Founder & Chairman of Yuanda China Holdings Limited (HKG:2789) recently shelled out CN¥109k to buy stock, at CN¥0.088 per share. That might not be a big purchase but it only increased their holding by 0.03%, and could be interpreted as a good sign.
Check out our latest analysis for Yuanda China Holdings
Yuanda China Holdings Insider Transactions Over The Last Year
Notably, that recent purchase by Founder & Chairman Baohua Kang was not the only time they bought Yuanda China Holdings shares this year. They previously made an even bigger purchase of HK$456k worth of shares at a price of HK$0.08 per share. So it's clear an insider wanted to buy, at around the current price, which is HK$0.09. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Yuanda China Holdings share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was Baohua Kang.
Baohua Kang bought 63954000 shares over the last 12 months at an average price of HK$0.095. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Yuanda China Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Yuanda China Holdings Boast High Insider Ownership?
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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Yuanda China Holdings insiders own 58% of the company, worth about HK$327m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Yuanda China Holdings Insiders?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Yuanda China Holdings insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! Along with insider transactions, I recommend checking if Yuanda China Holdings is growing revenue. This free chart of historic revenue and earnings should make that easy.