Danghuai Guo Bought 85% More Shares In China CITIC Bank

Investors who take an interest in China CITIC Bank Corporation Limited (HKG:998) should definitely note that the VP & Executive Director, Danghuai Guo, recently paid HK$3.72 per share to buy HK$2.0m worth of the stock. We reckon that's a good sign, especially since the purchase boosted their holding by 85%.

View our latest analysis for China CITIC Bank

China CITIC Bank Insider Transactions Over The Last Year

Notably, that recent purchase by Danghuai Guo is the biggest insider purchase of China CITIC Bank shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of HK$3.80. 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. In this case we're pleased to report that the insider purchases were made at close to current prices.

While China CITIC Bank insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

China CITIC Bank 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.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own HK$35m worth of China CITIC Bank stock, about 0.01% of the company. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We consider this fairly low insider ownership.

So What Does This Data Suggest About China CITIC Bank Insiders?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Insiders likely see value in China CITIC Bank shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing China CITIC Bank. When we did our research, we found 2 warning signs for China CITIC Bank (1 is potentially serious!) that we believe deserve your full attention.

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.

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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.