One Pu'er Lancang Ancient Tea Insider Raised Their Stake In The Previous Year
Insiders were net buyers of Pu'er Lancang Ancient Tea Co., Ltd.'s (HKG:6911 ) stock during the past year. That is, insiders bought more stock than they sold.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Pu'er Lancang Ancient Tea
Over the last year, we can see that the biggest insider purchase was by insider Gyeongguk Kim for HK$32m worth of shares, at about HK$2.44 per share. That means that an insider was happy to buy shares at above the current price of HK$2.20. 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. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Gyeongguk Kim.
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!
See our latest analysis for Pu'er Lancang Ancient Tea
Pu'er Lancang Ancient Tea 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 Pu'er Lancang Ancient Tea 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. Insiders own 36% of Pu'er Lancang Ancient Tea shares, worth about HK$119m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Pu'er Lancang Ancient Tea Tell Us?
It doesn't really mean much that no insider has traded Pu'er Lancang Ancient Tea shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like Pu'er Lancang Ancient Tea insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 4 warning signs for Pu'er Lancang Ancient Tea (2 are concerning!) that we believe deserve your full attention.
Of course Pu'er Lancang Ancient Tea may not be the best stock to buy. So you may wish to see this free collection of high quality 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.