Potential EVA Precision Industrial Holdings Limited (HKG:838) shareholders may wish to note that the Co-Founder, Yaohua Zhang, recently bought HK$2.2m worth of stock, paying HK$0.72 for each share. Although the purchase only increased their holding by 6.3%, it is still a solid purchase in our view.
Check out our latest analysis for EVA Precision Industrial Holdings
The Last 12 Months Of Insider Transactions At EVA Precision Industrial Holdings
Notably, that recent purchase by Yaohua Zhang is the biggest insider purchase of EVA Precision Industrial Holdings shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of HK$0.75. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the EVA Precision Industrial Holdings insiders decided to buy shares at close to current prices.
In the last twelve months EVA Precision Industrial Holdings insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. EVA Precision Industrial Holdings insiders own 43% of the company, currently worth about HK$565m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The EVA Precision Industrial Holdings Insider Transactions Indicate?
It is good 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 EVA Precision Industrial Holdings insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! 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. Case in point: We've spotted 1 warning sign for EVA Precision Industrial Holdings you should be aware of.
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.
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