Insiders who bought Qingdao AInnovation Technology Group Co., Ltd. (HKG:2121) stock in the last 12 months were richly rewarded last week. The company's market value increased by HK$412m as a result of the stock's 15% gain over the same period. As a result, the stock they originally bought for CN¥22.2m is now worth CN¥42.1m.
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 Qingdao AInnovation Technology Group
Over the last year, we can see that the biggest insider purchase was by CEO & Executive Director Hui Xu for HK$22m worth of shares, at about HK$3.06 per share. Even though the purchase was made at a significantly lower price than the recent price (HK$5.80), 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.
Happily, we note that in the last year insiders paid HK$22m for 7.26m shares. But they sold 444.00k shares for HK$3.5m. In total, Qingdao AInnovation Technology Group insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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.
Have Qingdao AInnovation Technology Group Insiders Traded Recently?
Independent Non-Executive Director Deren Xie bought just HK$9.6k worth of shares in that time. That's not much at all. Looking at the net result, we don't think these recent trades shed much light on how insiders, as a group, are feeling about the company's prospects.
Insider Ownership Of Qingdao AInnovation Technology Group
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. Qingdao AInnovation Technology Group insiders own about HK$613m worth of shares. That equates to 19% of the company. 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 Qingdao AInnovation Technology Group Insiders?
We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Qingdao AInnovation Technology Group insiders think the business has merit. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. You'd be interested to know, that we found 2 warning signs for Qingdao AInnovation Technology Group and we suggest you have a look.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.