XJ International Holdings Insiders Lose Out As Stock Sinks To HK$0.14

Insiders who bought CN¥1.49m worth of XJ International Holdings Co., Ltd.'s (HKG:1765) stock at an average buy price of CN¥0.20 over the last year may be disappointed by the recent 16% decrease in the stock. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only CN¥1.02m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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XJ International Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by CEO, President & Executive Director Huiwu Wang for HK$1.5m worth of shares, at about HK$0.20 per share. That means that an insider was happy to buy shares at above the current price of HK$0.14. 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. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Huiwu Wang was the only individual insider to buy shares in the last twelve months.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for XJ International Holdings

XJ International 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

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. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own HK$24m worth of XJ International Holdings stock, about 2.1% of the company. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We prefer to see high levels of insider ownership.

So What Do The XJ International Holdings Insider Transactions Indicate?

It doesn't really mean much that no insider has traded XJ International Holdings shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in XJ International Holdings and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing XJ International Holdings. Case in point: We've spotted 2 warning signs for XJ International Holdings you should be aware of.

Of course XJ International 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.