Xuzhou Zhou Is The Co-Chairmen of the Board of Meilleure Health International Industry Group Limited (HKG:2327) And They Just Spent HK$1.8m On Shares


SEHK:2327 Recent Insider Trading, January 13th 2020

Potential Meilleure Health International Industry Group Limited (HKG:2327) shareholders may wish to note that the Co-Chairmen of the Board, Xuzhou Zhou, recently bought HK$1.8m worth of stock, paying HK$0.44 for each share. While that’s a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 0.5%.

See our latest analysis for Meilleure Health International Industry Group

The Last 12 Months Of Insider Transactions At Meilleure Health International Industry Group

Notably, that recent purchase by Co-Chairmen of the Board Xuzhou Zhou was not the only time they bought Meilleure Health International Industry Group shares this year. They previously made an even bigger purchase of HK$39m worth of shares at a price of HK$0.91 per share. That means that even when the share price was higher than HK$0.45 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it’s very important to consider the price insiders pay for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Happily, we note that in the last year insiders paid HK$75m for 94.66m shares. On the other hand they divested 90000 shares, for HK$144k. Overall, Meilleure Health International Industry Group insiders were net buyers last year. They paid about HK$0.80 on average. I’d consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

SEHK:2327 Recent Insider Trading, January 13th 2020

Meilleure Health International Industry Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Meilleure Health International Industry Group Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Insiders own 4.9% of Meilleure Health International Industry Group shares, worth about HK$94m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Meilleure Health International Industry Group Insider Transactions Indicate?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Meilleure Health International Industry Group shares, given these transactions (along with notable insider ownership of the company). If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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, but not derivative transactions.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.


Source link