Insider Buying: The Golden Wheel Tiandi Holdings Company Limited (HKG:1232) Vice Chairman & CEO Just Bought CN¥103k Worth Of Shares

Whilst it may not be a huge deal, we thought it was good to see that the Golden Wheel Tiandi Holdings Company Limited (HKG:1232) Vice Chairman & CEO, Kam Wong, recently bought HK$103k worth of stock, for HK$0.51 per share. That might not be a big purchase but it only increased their holding by 9.9%, and could be interpreted as a good sign.

Check out our latest analysis for Golden Wheel Tiandi Holdings

Golden Wheel Tiandi Holdings Insider Transactions Over The Last Year

Notably, that recent purchase by Vice Chairman & CEO Kam Wong was not the only time they bought Golden Wheel Tiandi Holdings shares this year. They previously made an even bigger purchase of HK$423k worth of shares at a price of HK$0.60 per share. That means that an insider was happy to buy shares at above the current price of HK$0.49. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While Golden Wheel Tiandi Holdings insiders bought shares last year, they didn't sell. The chart below shows insider transactions (by individuals) over the last year. 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. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Golden Wheel Tiandi Holdings

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 17% of Golden Wheel Tiandi Holdings shares, worth about HK$147m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Golden Wheel Tiandi Holdings Insiders?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Golden Wheel Tiandi Holdings. One for the watchlist, at least! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To help with this, we've discovered 5 warning signs (1 is a bit unpleasant!) that you ought to be aware of before buying any shares in Golden Wheel Tiandi Holdings.

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, but not derivative transactions.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

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