 Kaixin Auto Hldgs Inc NASDAQ:KXIN was trading 1.1 higher from the previous closing price. Shareholder Value Fund filed a Form 4 with the SEC on Monday, July 20. The insider bought 5,119,571 shares at 1.32 on Tuesday, Apr 30, and bought 4,213,629 shares at 1.00 on Monday, Jul 06. . After the transactions, the executives stake in Kaixin Auto Hldgs Inc. movedto 5,119,571 shares.Why Insider Transactions Are Important? While transactions from an insider shouldnt be used as the sole item to make an investment or trading decision, an insider buying or selling stock in their company can be a good added factor that leads to more conviction in a decision.When an insider buys stock after an important sell off, that can indicate the insiders faith in the success of the organization. Henceforth, if the stock is bought at new highs, it might be because the insider feels that the stock is not overvalued. Conversely, insiders who are selling stock at new lows can potentially indicate some kind of capitulation moment. Insiders selling at new highs can indicate that exec wants to take some profit and lock in a gain.Important Transaction Codes Wall Street tends to focus on insider transactions which take place in the open market, viewed inside a Form 4 filing via codes P for purchase and S for sale. An open-market transaction means the insider went into the market of their own volition and made an active decision about the potential path for a company and its stock moving forward.Transaction codes other than P or S are often viewed with less conviction as they are often not tied to a decision by the exec. As an example, transaction code C indicates the conversion of an option. Transaction code A indicates the insider may have been forced to sell shares in order to receive compensation the exec was promised upon being hired by a company.See more from Benzinga 7 Financial Services Stocks Moving In Wednesdays Pre-Market Session 13 Financial Services Stocks Moving In Fridays Pre-Market SessionC 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. 