Whilst it may not be a huge deal, we thought it was good to see that the Jingrui Holdings Limited (HKG:1862) Co-Chairman & CEO, Hao Yan, recently bought HK$712k worth of stock, for HK$2.16 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

See our latest analysis for Jingrui Holdings

The Last 12 Months Of Insider Transactions At Jingrui Holdings

In fact, the recent purchase by Co-Chairman & CEO Hao Yan was not their only acquisition of Jingrui Holdings shares this year. They previously made an even bigger purchase of HK$45m worth of shares at a price of HK$2.50 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$2.12). 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 always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Hao Yan was the only individual insider to buy shares in the last twelve months.

Hao Yan purchased 21.33m shares over the year. The average price per share was HK$2.45. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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 Jingrui 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. We usually like to see fairly high levels of insider ownership. It's great to see that Jingrui Holdings insiders own 69% of the company, worth about HK$2.0b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Jingrui Holdings Tell Us?

It's certainly positive 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 Jingrui Holdings. 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. To help with this, we've discovered 2 warning signs (1 doesn't sit too well with us!) that you ought to be aware of before buying any shares in Jingrui Holdings.

Of course Jingrui 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, but not derivative transactions.

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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. 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. Thank you for reading.