Insiders At Ev Dynamics (Holdings) See Good Returns After Buying Stock Worth HK$27.0m

Insiders who bought Ev Dynamics (Holdings) Limited (HKG:476) in the last 12 months may probably not pay attention to the stock's recent 10% drop. After taking the recent loss into consideration, the HK$27.0m worth of stock they bought is now worth HK$57.6m, indicating that their investment yielded a positive return.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

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Ev Dynamics (Holdings) Insider Transactions Over The Last Year

The insider Hua Xu made the biggest insider purchase in the last 12 months. That single transaction was for HK$27m worth of shares at a price of HK$0.45 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$0.96. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

The chart below shows insider transactions (by companies and 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!

Check out our latest analysis for Ev Dynamics (Holdings)

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insiders At Ev Dynamics (Holdings) Have Bought Stock Recently

Over the last three months, we've seen significantly more insider buying, than insider selling, at Ev Dynamics (Holdings). insider Hua Xu spent HK$27m on stock. But we did see insider Hua Xu sell shares worth HK$1.1m. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.

Does Ev Dynamics (Holdings) Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 31% of Ev Dynamics (Holdings) shares, worth about HK$87m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Ev Dynamics (Holdings) Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Ev Dynamics (Holdings) insiders are well aligned, and that they may think the share price is too low. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Our analysis shows 3 warning signs for Ev Dynamics (Holdings) (2 are significant!) and we strongly recommend you look at these before investing.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.