Zhong Ying International Group Insider Buyers See Boost After Market Cap Rose HK$5.8m

Insiders who bought Zhong Ying International Group Limited (HKG:8516) stock in the last 12 months were richly rewarded last week. The company's market value increased by HK$5.8m as a result of the stock's 13% gain over the same period. As a result, their original purchase of HK$15.1m worth of stock is now worth HK$19.8m.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

The Last 12 Months Of Insider Transactions At Zhong Ying International Group

In the last twelve months, the biggest single purchase by an insider was when insider Jiaduo Chen bought HK$5.9m worth of shares at a price of HK$0.67 per share. We do like to see buying, but this purchase was made at well below the current price of HK$0.90. 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.

Happily, we note that in the last year insiders paid HK$15m for 22.00m shares. On the other hand they divested 1.76m shares, for HK$1.6m. Overall, Zhong Ying International Group insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for Zhong Ying International Group

Zhong Ying International Group is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At Zhong Ying International Group Have Bought Stock Recently

At Zhong Ying International Group,over the last quarter, we have observed quite a lot more insider buying than insider selling. In fact, five insiders bought HK$15m worth of shares. But insider Jiaduo Chen sold shares worth HK$1.6m. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.

Insider Ownership Of Zhong Ying International Group

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Zhong Ying International Group insiders own about HK$21m worth of shares (which is 41% 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.

So What Do The Zhong Ying International Group Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Zhong Ying International Group. That's what I like to see! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example, Zhong Ying International Group has 4 warning signs (and 3 which are a bit unpleasant) we think you should know about.

Of course Zhong Ying International Group may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.