Potential Orient Victory Travel Group Company Limited (HKG:265) shareholders may wish to note that the Chairman & CEO, Baodong Shi, recently bought HK$1.3m worth of stock, paying HK$0.14 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 0.1%.

View our latest analysis for Orient Victory Travel Group

The Last 12 Months Of Insider Transactions At Orient Victory Travel Group

Notably, that recent purchase by Chairman & CEO Baodong Shi was not the only time they bought Orient Victory Travel Group shares this year. They previously made an even bigger purchase of HK$2.0m worth of shares at a price of HK$0.13 per share. That means that even when the share price was higher than HK$0.076 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Baodong Shi.

Baodong Shi bought a total of 24.66m shares over the year at an average price of HK$0.13. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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

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. Orient Victory Travel Group insiders own about HK$515m worth of shares (which is 61% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Orient Victory Travel Group Insiders?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Orient Victory Travel Group. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 3 warning signs for Orient Victory Travel Group (of which 1 is a bit concerning!) you should know about.

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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