Zhong Jia Guo Xin Holdings Insiders Enjoying HK$3.8m Appreciation On HK$8.78m Investment

Insiders who bought Zhong Jia Guo Xin Holdings Company Limited (HKG:899) stock in the last 12 months were richly rewarded last week. The company's market value increased by HK$8.5m as a result of the stock's 10.0% gain over the same period. Put another way, the original HK$8.78m acquisition is now worth HK$12.6m.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Zhong Jia Guo Xin Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Jia Yi Li for HK$6.8m worth of shares, at about HK$0.15 per share. Even though the purchase was made at a significantly lower price than the recent price (HK$0.21), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While Zhong Jia Guo Xin Holdings insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Zhong Jia Guo Xin 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.

Does Zhong Jia Guo Xin Holdings 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. We usually like to see fairly high levels of insider ownership. Insiders own 24% of Zhong Jia Guo Xin Holdings shares, worth about HK$23m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Zhong Jia Guo Xin Holdings Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Zhong Jia Guo Xin Holdings insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 4 warning signs for Zhong Jia Guo Xin Holdings (2 are a bit unpleasant!) that we believe deserve your full attention.

Of course Zhong Jia Guo Xin Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.

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

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.