Ertian Su Spends CN¥5.5m On Global New Material International Holdings Stock
Those following along with Global New Material International Holdings Limited (HKG:6616) will no doubt be intrigued by the recent purchase of shares by Ertian Su, Chairman & CEO of the company, who spent a stonking HK$5.5m on stock at an average price of HK$9.25. While that only increased their holding size by 0.6%, it is still a big swing by our standards.
Global New Material International Holdings Insider Transactions Over The Last Year
In fact, the recent purchase by Chairman & CEO Ertian Su was not their only acquisition of Global New Material International Holdings shares this year. They previously made an even bigger purchase of HK$9.7m worth of shares at a price of HK$7.57 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$8.74. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Ertian Su bought a total of 9.45m shares over the year at an average price of HK$7.72. 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!
See our latest analysis for Global New Material International Holdings
Global New Material International Holdings is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Global New Material International 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Global New Material International Holdings insiders own 9.7% of the company, worth about HK$1.1b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Global New Material International Holdings Insiders?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Global New Material International Holdings. One for the watchlist, at least! 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. Every company has risks, and we've spotted 2 warning signs for Global New Material International Holdings you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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