Insiders who bought VCREDIT Holdings Limited (HKG:2003) stock in the last 12 months were richly rewarded last week. The company's market value increased by HK$151m as a result of the stock's 12% gain over the same period. As a result, the stock they originally bought for CN¥94.8m is now worth CN¥151.8m.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for VCREDIT Holdings
VCREDIT Holdings Insider Transactions Over The Last Year
The Executive Chairman of the Board Ting Hung Ma made the biggest insider purchase in the last 12 months. That single transaction was for HK$53m worth of shares at a price of HK$1.80 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$2.88. 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.
Ting Hung Ma bought 52.69m shares over the last 12 months at an average price of HK$1.80. 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!
VCREDIT Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership Of VCREDIT Holdings
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that VCREDIT Holdings insiders own 55% of the company, worth about HK$772m. 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 VCREDIT Holdings 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 VCREDIT Holdings. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing VCREDIT Holdings. For instance, we've identified 4 warning signs for VCREDIT Holdings (2 make us uncomfortable) 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.