Those following along with Anchun International Holdings Ltd. (SGX:BTX) will no doubt be intrigued by the recent purchase of shares by Ming Xie, Non-Independent Non-Executive Chairman of the company, who spent a stonking S$402m on stock at an average price of S$5,210. While that only increased their holding size by 0.7%, it is still a big swing by our standards.
Notably, that recent purchase by Ming Xie is the biggest insider purchase of Anchun International Holdings shares that we've seen in the last year. That means that even when the share price was higher than S$0.38 (the recent price), an insider wanted to purchase shares. 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. The only individual insider to buy over the last year was Ming Xie.
Ming Xie bought 244.40k shares over the last 12 months at an average price of S$1,646. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
View our latest analysis for Anchun International Holdings
Anchun 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.
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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Anchun International Holdings insiders own 58% of the company, worth about S$10m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Anchun International Holdings insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Anchun International Holdings. While conducting our analysis, we found that Anchun International Holdings has 3 warning signs and it would be unwise to ignore these.
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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