Even if it's not a huge purchase, we think it was good to see that Ying Kit Wong, the Non-Executive Director of Raymond Industrial Limited (HKG:229) recently shelled out HK$631k to buy stock, at HK$0.97 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 24%.

Raymond Industrial Insider Transactions Over The Last Year

In fact, the recent purchase by Ying Kit Wong was the biggest purchase of Raymond Industrial shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than HK$0.97 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. 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 Ying Kit Wong.

Ying Kit Wong bought a total of 1.26m shares over the year at an average price of HK$0.97. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Raymond Industrial is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Raymond Industrial 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Raymond Industrial insiders own 45% of the company, currently worth about HK$216m based on the recent share price. 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 Raymond Industrial Insiders?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Raymond Industrial insiders are well aligned, and quite possibly think the share price is too low. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Raymond Industrial. Case in point: We've spotted 2 warning signs for Raymond Industrial you should be aware of.

But note: Raymond Industrial may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com