Manlun Zuo Bought 9.0% More Shares In China Lesso Group Holdings

Investors who take an interest in China Lesso Group Holdings Limited (HKG:2128) should definitely note that the CEO & Executive Director, Manlun Zuo, recently paid HK$3.31 per share to buy HK$1.7m worth of the stock. Although the purchase only increased their holding by 9.0%, it is still a solid purchase in our view.

View our latest analysis for China Lesso Group Holdings

China Lesso Group Holdings Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Founder & Executive Chairman Luen Hei Wong bought HK$20m worth of shares at a price of HK$5.30 per share. That means that an insider was happy to buy shares at above the current price of HK$3.19. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

While China Lesso Group Holdings insiders bought shares during the last year, they didn't sell. They paid about HK$4.37 on average. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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.

Does China Lesso Group Holdings Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. China Lesso Group Holdings insiders own about HK$6.9b worth of shares (which is 69% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The China Lesso Group Holdings Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about China Lesso Group Holdings. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with China Lesso Group Holdings and understanding them should be part of your investment process.

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 of direct interests only, but not derivative transactions or indirect interests.

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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.