Insiders' HK$16.1m Investments In Red Following Congyu Intelligent Agricultural Holdings' HK$82m Dip In Market Value

Insiders who bought HK$16.1m worth of Congyu Intelligent Agricultural Holdings Limited's (HKG:875) stock at an average buy price of HK$1.32 over the last year may be disappointed by the recent 28% decrease in the stock. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth HK$4.75m, which is not what they expected.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Congyu Intelligent Agricultural Holdings Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Lijun Jin bought HK$5.7m worth of shares at a price of HK$1.18 per share. That means that an insider was happy to buy shares at above the current price of HK$0.39. 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 always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Lijun Jin was the only individual insider to buy shares in the last twelve months.

Lijun Jin purchased 12.17m shares over the year. The average price per share was HK$1.32. 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!

View 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.

Does Congyu Intelligent Agricultural Holdings Boast High 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. We usually like to see fairly high levels of insider ownership. Congyu Intelligent Agricultural Holdings insiders own 57% of the company, currently worth about HK$121m based on the recent share price. 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 Does This Data Suggest About Congyu Intelligent Agricultural Holdings Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, Congyu Intelligent Agricultural Holdings insiders feel good about the company's future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Our analysis shows 4 warning signs for Congyu Intelligent Agricultural Holdings (2 are a bit concerning!) and we strongly recommend you look at these before investing.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.