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We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Tingyi (Cayman Islands) Holding Corp. (HKG:322).
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
Check out our latest analysis for Tingyi (Cayman Islands) Holding
The Last 12 Months Of Insider Transactions At Tingyi (Cayman Islands) Holding
In the last twelve months, the biggest single purchase by an insider was when Chairman of the Board Hong-Ming Wei bought HK$50m worth of shares at a price of HK$9.91 per share. So it’s clear an insider wanted to buy, even at a higher price. Their view may have changed since then, but at least it shows they felt optimistic at the time. That purchase may suggest an expectation of positive returns over the long term.
In the last twelve months insiders paid HK$51m for 5.10m shares purchased. Overall, Tingyi (Cayman Islands) Holding insiders were net buyers last year. They paid about HK$9.95 on average. I’d consider this a positive as it suggests insiders see value at around the current price, which is HK$9.59. 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 plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders at Tingyi (Cayman Islands) Holding Have Bought Stock Recently
Over the last quarter, Tingyi (Cayman Islands) Holding insiders have spent a meaningful amount on shares. In total, insiders bought CN¥50m worth of shares in that time, and we didn’t record any sales whatsoever. This makes one think the business has some good points.
Does Tingyi (Cayman Islands) Holding 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. Insiders own 0.4% of Tingyi (Cayman Islands) Holding shares, worth about HK$221m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.