Even if it's not a huge purchase, we think it was good to see that Junhua Wu, the Co-Founder of Baozun Inc. (NASDAQ:BZUN) recently shelled out US$74k to buy stock, at US$2.47 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 49%.
The Last 12 Months Of Insider Transactions At Baozun
In fact, the recent purchase by Co-Founder Junhua Wu was not their only acquisition of Baozun shares this year. Earlier in the year, they paid US$2.78 per share in a US$131k purchase. That means that an insider was happy to buy shares at above the current price of US$2.47. 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. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Junhua Wu was the only individual insider to buy shares in the last twelve months.
Junhua Wu purchased 91.29k shares over the year. The average price per share was US$2.62. 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!
See our latest analysis for Baozun
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Baozun Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Baozun insiders own about US$40m worth of shares. That equates to 27% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Baozun Tell Us?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Baozun insiders are well aligned, and that they may think the share price is too low. Of course, the future is what matters most. So if you are interested in Baozun, you should check out this free report on analyst forecasts for the company.
But note: Baozun 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 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.