Insiders who bought Ming Yuan Cloud Group Holdings Limited (HKG:909) stock lover the last 12 months are probably not as affected by last week's 13% loss. After accounting for the recent loss, the CN¥14.8m worth of shares they purchased is now worth CN¥17.8m, suggesting a good return on their investment.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Ming Yuan Cloud Group Holdings
In the last twelve months, the biggest single purchase by an insider was when VP & Executive Director Xiaohui Chen bought HK$2.5m worth of shares at a price of HK$2.53 per share. That means that an insider was happy to buy shares at around the current price of HK$2.74. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.
In the last twelve months Ming Yuan Cloud Group Holdings insiders were buying shares, but not selling. The average buy price was around HK$2.27. It is certainly positive to see 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 companies and individuals) over the last year depicted in the chart below. 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. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Ming Yuan Cloud Group Holdings Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Ming Yuan Cloud Group Holdings insiders own 49% of the company, currently worth about HK$2.4b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Ming Yuan Cloud Group Holdings Insider Transactions Indicate?
The fact that there have been no Ming Yuan Cloud Group Holdings insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Ming Yuan Cloud Group Holdings insiders think the business has merit. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 1 warning sign for Ming Yuan Cloud Group Holdings you should know about.
But note: Ming Yuan Cloud 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.
