Insiders were net buyers of Yadea Group Holdings Ltd.'s (HKG:1585 ) stock during the past year. That is, insiders bought more stock than they sold.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Yadea Group Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Vice Chairwoman & CEO Jinghong Qian for HK$5.7m worth of shares, at about HK$13.53 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$12.58). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for 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. Jinghong Qian was the only individual insider to buy shares in the last twelve months.

Jinghong Qian purchased 2.17m shares over the year. The average price per share was HK$12.95. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Does Yadea Group Holdings Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Yadea Group Holdings insiders own 64% of the company, worth about HK$25b. 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 Yadea Group Holdings Tell Us?

It doesn't really mean much that no insider has traded Yadea Group Holdings shares in the last quarter. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Yadea Group Holdings insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Yadea Group Holdings. At Simply Wall St, we found 1 warning sign for Yadea Group Holdings that deserve your attention before buying any shares.

But note: Yadea Group Holdings 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.