Those following along with Hengan International Group Company Limited (HKG:1044) will no doubt be intrigued by the recent purchase of shares by Lin-Chit Hui, Executive Deputy Chairman & CEO of the company, who spent a stonking HK$55m on stock at an average price of HK$55.29. While that only increased their holding size by 0.4%, it is still a big swing by our standards.
The Last 12 Months Of Insider Transactions At Hengan International Group
In fact, the recent purchase by Executive Deputy Chairman & CEO Lin-Chit Hui was not their only acquisition of Hengan International Group shares this year. They previously made an even bigger purchase of HK$483m worth of shares at a price of HK$53.42 per share. That implies that an insider found the current price of HK$58.35 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. In this case we’re pleased to report that the insider bought shares at close to current prices. Lin-Chit Hui was the only individual insider to buy over the year.
Lin-Chit Hui bought a total of 10.96m shares over the year at an average price of HK$53.69. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Hengan International Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
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. Hengan International Group insiders own 43% of the company, currently worth about HK$28b 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.
What Might The Insider Transactions At Hengan International Group Tell Us?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Hengan International Group insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! 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. At Simply Wall St, we found 1 warning sign for Hengan International Group that deserve your attention before buying any shares.
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, but not derivative transactions.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned.
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