Trade Alert: The Independent Non-Executive Director Of Chong Kin Group Holdings Limited (HKG:1609), Yifei Li, Has Just Spent HK$825k Buying A Few More Shares

Investors who take an interest in Chong Kin Group Holdings Limited (HKG:1609) should definitely note that the Independent Non-Executive Director, Yifei Li, recently paid HK$3.08 per share to buy HK$825k worth of the stock. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

View our latest analysis for Chong Kin Group Holdings

The Last 12 Months Of Insider Transactions At Chong Kin Group Holdings

Notably, that recent purchase by Yifei Li is the biggest insider purchase of Chong Kin Group Holdings shares that we've seen in the last year. Even though the purchase was made at a significantly lower price than the recent price (HK$4.00), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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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. I reckon it's a good sign if insiders own a significant number of shares in the company. Chong Kin Group Holdings insiders own 69% of the company, currently worth about HK$2.6b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Chong Kin Group Holdings Insider Transactions Indicate?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Chong Kin Group Holdings. Nice! 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've found that Chong Kin Group Holdings has 3 warning signs (2 are concerning!) that deserve your attention before going any further with your analysis.

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. 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.
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