Those following along with Trans-China Automotive Holdings Limited (Catalist:VI2) will no doubt be intrigued by the recent purchase of shares by Francis Hanjoe Tjia, Executive Chairman & CEO of the company, who spent a stonking S$1.3m on stock at an average price of S$0.18. While that only increased their holding size by 4.3%, it is still a big swing by our standards.
View our latest analysis for Trans-China Automotive Holdings
The Last 12 Months Of Insider Transactions At Trans-China Automotive Holdings
Notably, that recent purchase by Executive Chairman & CEO Francis Hanjoe Tjia was not the only time they bought Trans-China Automotive Holdings shares this year. They previously made an even bigger purchase of S$1.4m worth of shares at a price of S$0.27 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being S$0.18). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Trans-China Automotive Holdings insiders bought shares during the last year, they didn't sell. Their average price was about S$0.21. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Trans-China Automotive Holdings 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.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Trans-China Automotive Holdings insiders own 35% of the company, worth about S$37m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Trans-China Automotive Holdings Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Trans-China Automotive Holdings we think they are probably pretty confident of a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To help with this, we've discovered 4 warning signs (2 shouldn't be ignored!) that you ought to be aware of before buying any shares in Trans-China Automotive Holdings.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Join A Paid User Research Session
You'll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here