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$6.0m on stock at an average price of HK$4.38. While that only increased their holding size by 1.8%, it is still a big swing by our standards.
See our latest analysis for Global New Material International Holdings
Global New Material International Holdings Insider Transactions Over The Last Year
In fact, the recent purchase by Ertian Su was the biggest purchase of Global New Material International Holdings 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 around the current price of HK$4.47. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Global New Material International Holdings share holders is that an insider was buying at near the current price. Ertian Su was the only individual insider to buy shares in the last twelve months.
Ertian Su bought a total of 2.46m shares over the year at an average price of HK$4.32. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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.
Insider Ownership Of Global New Material International Holdings
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Global New Material International Holdings insiders own about HK$427m worth of shares. That equates to 7.7% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Global New Material International 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 Global New Material International Holdings insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course Global New Material International Holdings 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.