Looking at EVA Precision Industrial Holdings Limited's (HKG:838 ) insider transactions over the last year, we can see that insiders were net buyers. That is, there were more number of shares purchased by insiders than there were sold.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for EVA Precision Industrial Holdings
EVA Precision Industrial Holdings Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Co-Founder Yaohua Zhang for HK$2.2m worth of shares, at about HK$0.73 per share. That means that an insider was happy to buy shares at around the current price of HK$0.75. 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 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. The good news for EVA Precision Industrial Holdings share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was Yaohua Zhang.
Yaohua Zhang purchased 10.00m shares over the year. The average price per share was HK$0.72. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, 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).
Does EVA Precision Industrial 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. EVA Precision Industrial Holdings insiders own about HK$572m worth of shares (which is 44% of the company). 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 Do The EVA Precision Industrial Holdings Insider Transactions Indicate?
It doesn't really mean much that no insider has traded EVA Precision Industrial Holdings shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, EVA Precision Industrial Holdings insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing EVA Precision Industrial Holdings. While conducting our analysis, we found that EVA Precision Industrial Holdings has 1 warning sign and it would be unwise to ignore this.
Of course EVA Precision Industrial 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.