Congyu Intelligent Agricultural Holdings' Recent Gains Improve Losses On Insider Purchases Worth HK$16.1m
Some of the losses seen by insiders who purchased HK$16.1m worth of Congyu Intelligent Agricultural Holdings Limited (HKG:875) shares over the past year were recovered after the stock increased by 14% over the past week. The purchase, however, has proven to be a pricey bet, with losses currently totalling HK$12m.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Congyu Intelligent Agricultural Holdings
Over the last year, we can see that the biggest insider purchase was by insider Lijun Jin for HK$5.7m worth of shares, at about HK$1.18 per share. That means that an insider was happy to buy shares at above the current price of HK$0.33. 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. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Lijun Jin was the only individual insider to buy shares in the last twelve months. We note that Lijun Jin was both the biggest buyer and the biggest seller.
Lijun Jin bought a total of 12.17m shares over the year at an average price of HK$1.32. 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 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?
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. We usually like to see fairly high levels of insider ownership. Congyu Intelligent Agricultural Holdings insiders own 43% of the company, currently worth about HK$98m 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?
The fact that there have been no Congyu Intelligent Agricultural Holdings insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like Congyu Intelligent Agricultural Holdings insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. 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. To help with this, we've discovered 4 warning signs (3 are concerning!) that you ought to be aware of before buying any shares in Congyu Intelligent Agricultural Holdings.
But note: Congyu Intelligent Agricultural Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.