PATEO CONNECT Technology (Shanghai) Founder Acquires 1,248% More Stock

PATEO CONNECT Technology (Shanghai) Corporation (HKG:2889) shareholders (or potential shareholders) will be happy to see that the Founder, Zhenkai Ying, recently bought a whopping HK$32m worth of stock, at a price of HK$171. That purchase boosted their holding by 1,248%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

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The Last 12 Months Of Insider Transactions At PATEO CONNECT Technology (Shanghai)

In fact, the recent purchase by Zhenkai Ying was the biggest purchase of PATEO CONNECT Technology (Shanghai) shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of HK$115. 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

While PATEO CONNECT Technology (Shanghai) insiders bought shares during the last year, they didn't sell. 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!

Check out our latest analysis for PATEO CONNECT Technology (Shanghai)

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of PATEO CONNECT Technology (Shanghai)

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. PATEO CONNECT Technology (Shanghai) insiders own about HK$3.9b worth of shares (which is 22% of the company). 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 PATEO CONNECT Technology (Shanghai) Tell Us?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about PATEO CONNECT Technology (Shanghai). One for the watchlist, at least! 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. In terms of investment risks, we've identified 1 warning sign with PATEO CONNECT Technology (Shanghai) and understanding it should be part of your investment process.

Of course PATEO CONNECT Technology (Shanghai) 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.