Those following along with VCREDIT Holdings Limited (HKG:2003) will no doubt be intrigued by the recent purchase of shares by Ting Hung Ma, Executive Chairman of the Board of the company, who spent a stonking HK$37m on stock at an average price of HK$1.80. Not only is that a big swing, but it increased their holding size by 11%, which is definitely great to see.

VCREDIT Holdings Insider Transactions Over The Last Year

Notably, that recent purchase by Ting Hung Ma is the biggest insider purchase of VCREDIT Holdings shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is HK$1.98. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the VCREDIT Holdings insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was Ting Hung Ma.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

VCREDIT Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does VCREDIT Holdings Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that VCREDIT Holdings insiders own 50% of the company, worth about HK$481m. 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 VCREDIT Holdings Insiders?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest VCREDIT Holdings insiders are well aligned, and quite possibly think the share price is too low. Looks promising! 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 (2 are potentially serious!) that you ought to be aware of before buying any shares in VCREDIT Holdings.

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.