Insider Buying: China Yongda Automobiles Services Holdings Executive Chairman of the Board of Directors Bought CN¥2.0m Of Shares

Investors who take an interest in China Yongda Automobiles Services Holdings Limited (HKG:3669) should definitely note that the Executive Chairman of the Board of Directors, Tak On Cheung, recently paid HK$1.02 per share to buy HK$2.0m worth of the stock. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.

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The Last 12 Months Of Insider Transactions At China Yongda Automobiles Services Holdings

Notably, that recent purchase by Tak On Cheung is the biggest insider purchase of China Yongda Automobiles Services Holdings shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of HK$0.89. 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. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Tak On Cheung was the only individual insider to buy during the last year.

Tak On Cheung bought 3.50m shares over the last 12 months at an average price of HK$0.97. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for China Yongda Automobiles Services Holdings

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.

Insider Ownership Of China Yongda Automobiles Services Holdings

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. Insiders own 35% of China Yongda Automobiles Services Holdings shares, worth about HK$572m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About China Yongda Automobiles Services Holdings Insiders?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest China Yongda Automobiles Services Holdings 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 China Yongda Automobiles Services Holdings. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of China Yongda Automobiles Services Holdings.

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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.