Investors who take an interest in Vesync Co., Ltd (HKG:2148) should definitely note that the CFO, VP & Executive Director, Zhaojun Chen, recently paid HK$4.14 per share to buy HK$829k worth of the stock. Although the purchase only increased their holding by 5.0%, it is still a solid purchase in our view.

The Last 12 Months Of Insider Transactions At Vesync

Notably, that recent purchase by CFO, VP & Executive Director Zhaojun Chen was not the only time they bought Vesync shares this year. Earlier in the year, they paid HK$5.07 per share in a HK$5.1m purchase. That means that an insider was happy to buy shares at above the current price of HK$4.31. 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. Zhaojun Chen was the only individual insider to buy during the last year.

Zhaojun Chen purchased 1.44m shares over the year. The average price per share was HK$4.94. 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!

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

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. We usually like to see fairly high levels of insider ownership. Vesync insiders own 70% of the company, currently worth about HK$3.4b based on the recent share price. 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 Vesync 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 Vesync insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Vesync. In terms of investment risks, we've identified 1 warning sign with Vesync and understanding it should be part of your investment process.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.