Last week, Zhongmin Baihui Retail Group Ltd. (SGX:5SR) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 18% last week, resulting in a S$14m increase in the company's market worth, implying a 10% gain on their initial purchase. Put another way, the original CN¥359.9k acquisition is now worth CN¥396.0k.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

The Last 12 Months Of Insider Transactions At Zhongmin Baihui Retail Group

Over the last year, we can see that the biggest insider purchase was by CEO & Executive Director Kaitong Chen for S$360k worth of shares, at about S$0.45 per share. So it's clear an insider wanted to buy, at around the current price, which is S$0.49. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Zhongmin Baihui Retail Group share holders is that an insider was buying at near the current price. Kaitong Chen was the only individual insider to buy shares in the last twelve months.

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!

Check out our latest analysis for Zhongmin Baihui Retail Group

Zhongmin Baihui Retail Group is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of Zhongmin Baihui Retail Group

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Zhongmin Baihui Retail Group insiders own 71% of the company, currently worth about S$67m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Zhongmin Baihui Retail Group Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Zhongmin Baihui Retail Group insiders feel good about the company's 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. Every company has risks, and we've spotted 4 warning signs for Zhongmin Baihui Retail Group (of which 1 can't be ignored!) you should know about.

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 of direct interests only, but not derivative transactions or indirect interests.