Diaspora

Even with Xi'an Haitian Antenna Technologies Co., Ltd. (HKG:8227) stock down 10.0% this week, insiders who bought recently netted around CN¥64k – Simply Wall St

Insiders who bought Xi'an Haitian Antenna Technologies Co., Ltd. (HKG:8227) in the last 12 months may probably not pay attention to the stock's recent 10.0% drop. After accounting for the recent loss, the CN¥825k worth of shares they purchased is now worth CN¥889k, suggesting a good return on their investment.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Xi'an Haitian Antenna Technologies
Over the last year, we can see that the biggest insider purchase was by Vice Chairman Ji Chen for HK$825k worth of shares, at about HK$0.50 per share. That means that an insider was happy to buy shares at around the current price of HK$0.54. 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 do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Xi'an Haitian Antenna Technologies insider decided to buy shares at close to current prices. Ji Chen was the only individual insider to buy shares in the last twelve months.
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!
Xi'an Haitian Antenna Technologies is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Xi'an Haitian Antenna Technologies insiders own about HK$164m worth of shares. That equates to 16% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Xi'an Haitian Antenna Technologies. Nice! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. You'd be interested to know, that we found 1 warning sign for Xi'an Haitian Antenna Technologies and we suggest you have a look.
But note: Xi'an Haitian Antenna Technologies may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
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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.
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Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.
Xi'an Haitian Antenna Technologies Co., Ltd., together with its subsidiaries, researches and develops, manufactures, installs, and sells mobile communication antennas and related products in the People’s Republic of China and other Asian countries.
Imperfect balance sheet with weak fundamentals.
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