China PengFei Group Executive Chairman of the Board Acquires 4.6% More Stock \

China PengFei Group Limited (HKG:3348) shareholders (or potential shareholders) will be happy to see that the Executive Chairman of the Board, Jiaan Wang, recently bought a whopping HK$11m worth of stock, at a price of HK$1.12. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 4.6%.

See our latest analysis for China PengFei Group

China PengFei Group Insider Transactions Over The Last Year

Notably, that recent purchase by Jiaan Wang is the biggest insider purchase of China PengFei Group shares that we've seen in the last year. That means that even when the share price was higher than HK$1.10 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Jiaan Wang.

The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

China PengFei Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership Of China PengFei 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. China PengFei Group insiders own 43% of the company, currently worth about HK$258m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At China PengFei Group Tell Us?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest China PengFei Group insiders are well aligned, and quite possibly think the share price is too low. 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. At Simply Wall St, we've found that China PengFei Group has 3 warning signs (1 can't be ignored!) that deserve your attention before going any further with your analysis.

But note: China PengFei Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.