Midea Real Estate Holding Non-Executive Director Acquires 2.1% More Stock
Those following along with Midea Real Estate Holding Limited (HKG:3990) will no doubt be intrigued by the recent purchase of shares by Jianfeng He, Non-Executive Director of the company, who spent a stonking HK$57m on stock at an average price of HK$2.37. While that only increased their holding size by 2.1%, it is still a big swing by our standards.
The Last 12 Months Of Insider Transactions At Midea Real Estate Holding
Notably, that recent purchase by Jianfeng He is the biggest insider purchase of Midea Real Estate Holding shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$2.32). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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. Jianfeng He was the only individual insider to buy shares in the last twelve months.
The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
View our latest analysis for Midea Real Estate Holding
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 Midea Real Estate Holding 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Midea Real Estate Holding insiders own 83% of the company, worth about HK$2.8b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Midea Real Estate Holding Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Midea Real Estate Holding. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 3 warning signs (1 is potentially serious!) that you ought to be aware of before buying any shares in Midea Real Estate Holding.
Of course Midea Real Estate Holding 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.
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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.