Even if it's not a huge purchase, we think it was good to see that Guang Bao Meng, the Executive Chairman of Huajun International Group Limited (HKG:377) recently shelled out HK$64k to buy stock, at HK$11.49 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.
Huajun International Group Insider Transactions Over The Last Year
Earlier in the year, Executive Chairman Guang Bao Meng paid HK$10.65 per share in a HK$112k purchase. So it's clear an insider wanted to buy, at around the current price, which is HK$12.00. 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 Huajun International Group insider decided to buy shares at close to current prices. Guang Bao Meng was the only individual insider to buy shares in the last twelve months.
Guang Bao Meng purchased 37.20k shares over the year. The average price per share was HK$10.67. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Huajun International Group
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Huajun International Group insiders own 74% of the company, worth about HK$543m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Huajun International Group Tell Us?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Huajun International Group. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Huajun International Group has 3 warning signs (and 1 which shouldn't be ignored) we think you should know about.
Of course Huajun International Group may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.
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This article by Simply Wall St is general in nature. 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. Thank you for reading.