Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Yum China Holdings, Inc. (NYSE:YUMC), that sends out a positive message to the company's shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Yum China Holdings

The Last 12 Months Of Insider Transactions At Yum China Holdings

The Chief Technology Officer Leila Zhang made the biggest insider purchase in the last 12 months. That single transaction was for US$133k worth of shares at a price of US$33.36 each. Even though the purchase was made at a significantly lower price than the recent price (US$49.79), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Over the last year, we can see that insiders have bought 18.40k shares worth US$620k. But they sold 1.00k shares for US$50k. In total, Yum China Holdings insiders bought more than they sold over the last year. 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!

Yum China Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Yum China Holdings Insiders Are Selling The Stock

The last quarter saw substantial insider selling of Yum China Holdings shares. Specifically, Chief People Officer Jerry Ding ditched US$50k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.4% of Yum China Holdings shares, worth about US$73m. 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 Does This Data Suggest About Yum China Holdings Insiders?

Our data shows a little more insider selling, but no insider buying, in the last three months. But the sales were small, so we're not concerned. However, our analysis of transactions over the last year is heartening. Insiders own shares in Yum China Holdings and we see no evidence to suggest they are worried about the future. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.