Insiders At Qing Hua Holding Group See Good Returns After Buying Stock Worth HK$26.0m

Insiders who bought Qing Hua Holding Group Company Limited (HKG:8082) in the last 12 months may probably not pay attention to the stock's recent 12% drop. After accounting for the recent loss, the HK$26.0m worth of shares they purchased is now worth HK$50.1m, suggesting a good return on their investment.

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.

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 Qing Hua Holding Group

Over the last year, we can see that the biggest insider purchase was by insider Xuefeng Liu for HK$15m worth of shares, at about HK$0.029 per share. We do like to see buying, but this purchase was made at well below the current price of HK$0.059. 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.

Over the last year, we can see that insiders have bought 849.59m shares worth HK$26m. On the other hand they divested 518.39m shares, for HK$15m. In the last twelve months there was more buying than selling by Qing Hua Holding Group insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Qing Hua Holding Group

Qing Hua Holding 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.

Insider Ownership

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. Qing Hua Holding Group insiders own about HK$58m worth of shares. That equates to 37% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Qing Hua Holding Group Insiders?

Insider buying and selling have balanced each other out in the last three months, so we can't deduct anything useful from these recent trades. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Qing Hua Holding Group insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Qing Hua Holding Group. To that end, you should learn about the 4 warning signs we've spotted with Qing Hua Holding Group (including 2 which shouldn't be ignored).

Of course Qing Hua Holding 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.