Insiders who purchased Tianli International Holdings Limited (HKG:1773) shares in the past 12 months are unlikely to be deeply impacted by the stock's 10% decline over the past week. Reason being, despite the recent loss, insiders original purchase value of CN¥6.93m is now worth CN¥10.7m.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Tianli International Holdings
The Chairman of the Board & CEO Shi Luo made the biggest insider purchase in the last 12 months. That single transaction was for HK$4.6m worth of shares at a price of HK$3.20 each. We do like to see buying, but this purchase was made at well below the current price of HK$4.39. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Shi Luo purchased 2.43m shares over the year. The average price per share was HK$2.85. 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!
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 Tianli International 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Tianli International Holdings insiders own about HK$4.0b worth of shares (which is 43% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Tianli International Holdings Insider Transactions Indicate?
The fact that there have been no Tianli International Holdings insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Tianli International Holdings insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tianli International Holdings. At Simply Wall St, we found 1 warning sign for Tianli International Holdings that deserve your attention before buying any shares.
But note: Tianli International Holdings 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com