Group Founder of VSTECS Holdings Jialin Li Buys More Stock

VSTECS Holdings Limited (HKG:856) shareholders (or potential shareholders) will be happy to see that the Group Founder, Jialin Li, recently bought a whopping HK$18m worth of stock, at a price of HK$8.62. While that only increased their holding size by 0.8%, it is still a big swing by our standards.

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The Last 12 Months Of Insider Transactions At VSTECS Holdings

In fact, the recent purchase by Jialin Li was the biggest purchase of VSTECS Holdings shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of HK$8.67 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for VSTECS 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 Jialin Li.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for VSTECS Holdings

VSTECS Holdings is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. VSTECS Holdings insiders own 42% of the company, currently worth about HK$5.2b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At VSTECS Holdings Tell Us?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about VSTECS Holdings. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing VSTECS Holdings. You'd be interested to know, that we found 1 warning sign for VSTECS Holdings and we suggest you have a look.

Of course VSTECS Holdings 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.

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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.