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Bosideng International Holdings Limited (HKG:3998) shareholders (or potential shareholders) will be happy to see that the Senior VP & Executive Director, Jinsong Rui, recently bought a whopping CN¥10m worth of stock, at a price of CN¥3.83. Not only is that a big swing, but it increased their holding size by 26%, which is definitely great to see.
See our latest analysis for Bosideng International Holdings
The Last 12 Months Of Insider Transactions At Bosideng International Holdings
In fact, the recent purchase by Jinsong Rui was the biggest purchase of Bosideng International Holdings shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is HK$3.96. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Bosideng International Holdings share holders is that insiders were buying at near the current price.
In the last twelve months insiders purchased 4696000 shares for HK$13m. On the other hand they divested 4696000 shares, for HK$4.9m. Overall, Bosideng International Holdings insiders were net buyers last year. The average buy price was around HK$2.82. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Bosideng International Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. 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 Bosideng International Holdings insiders own 66% of the company, worth about HK$27b. 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 Bosideng International Holdings Tell Us?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Bosideng International Holdings. Nice! Of course, the future is what matters most. So if you are interested in Bosideng International Holdings, you should check out this free report on analyst forecasts for the company.