Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Tiangong International Company Limited (HKG:826), that sends out a positive message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Tiangong International
The Last 12 Months Of Insider Transactions At Tiangong International
In the last twelve months, the biggest single purchase by an insider was when Executive Chairman Xiaokun Zhu bought HK$3.2m worth of shares at a price of HK$1.62 per share. Even though the purchase was made at a significantly lower price than the recent price (HK$1.90), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Tiangong International insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Tiangong International is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insiders At Tiangong International Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Tiangong International. Specifically, CEO, Chief Investment Officer & Executive Director Zefeng Zhu bought HK$3.2m worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.
Does Tiangong International Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that Tiangong International insiders own 55% of the company, worth about HK$2.8b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Tiangong International Tell Us?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Tiangong International. One for the watchlist, at least! Of course, the future is what matters most. So if you are interested in Tiangong International, you should check out this free report on analyst forecasts for the company.
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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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.