Congyu Intelligent Agricultural Holdings Insiders Land Bargain With Gains Of HK$4.4m

Insiders who purchased Congyu Intelligent Agricultural Holdings Limited (HKG:875) shares in the past 12 months are unlikely to be deeply impacted by the stock's 11% decline over the past week. After accounting for the recent loss, the HK$13.3m worth of shares they purchased is now worth HK$17.7m, suggesting a good return on their investment.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Congyu Intelligent Agricultural Holdings Insider Transactions Over The Last Year

The insider Lijun Jin made the biggest insider purchase in the last 12 months. That single transaction was for HK$5.7m worth of shares at a price of HK$1.18 each. We do like to see buying, but this purchase was made at well below the current price of HK$1.71. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Lijun Jin bought a total of 10.33m shares over the year at an average price of HK$1.29. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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 Congyu Intelligent Agricultural Holdings

Congyu Intelligent Agricultural Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

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. Congyu Intelligent Agricultural Holdings insiders own about HK$521m worth of shares (which is 56% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Congyu Intelligent Agricultural Holdings Tell Us?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. 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 Congyu Intelligent Agricultural Holdings insiders are well aligned, and quite possibly think the share price is too low. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Congyu Intelligent Agricultural Holdings. In terms of investment risks, we've identified 3 warning signs with Congyu Intelligent Agricultural Holdings and understanding these should be part of your investment process.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.