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華爾街日報Bullish Zhejiang Leapmotor Technology Insiders Loaded Up On CN¥562.9m Of Stock
Over the last year, a good number of insiders have significantly increased their holdings in Zhejiang Leapmotor Technology Co., Ltd. (HKG:9863). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At Zhejiang Leapmotor Technology
Over the last year, we can see that the biggest insider purchase was by Founder Jiangming Zhu for HK$96m worth of shares, at about HK$48.26 per share. That implies that an insider found the current price of HK$49.08 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.
Happily, we note that in the last year insiders paid HK$563m for 10.94m shares. On the other hand they divested 550.30k shares, for HK$35m. In total, Zhejiang Leapmotor Technology insiders bought more than they sold over the last year. 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!
View our latest analysis for Zhejiang Leapmotor Technology
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.
Insiders At Zhejiang Leapmotor Technology Have Bought Stock Recently
Over the last quarter, Zhejiang Leapmotor Technology insiders have spent a meaningful amount on shares. In total, insiders bought HK$219m worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
Insider Ownership Of Zhejiang Leapmotor Technology
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Zhejiang Leapmotor Technology insiders own 15% of the company, worth about HK$10b. 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 Does This Data Suggest About Zhejiang Leapmotor Technology Insiders?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Zhejiang Leapmotor Technology. That's what I like to see! Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Zhejiang Leapmotor Technology.
But note: Zhejiang Leapmotor Technology 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.