Jiaan Wang Is The Executive Chairman of the Board of China PengFei Group Limited (HKG:3348) And They Just Picked Up 3.8% More Shares

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$9.1m worth of stock, at a price of HK$1.16. While that only increased their holding size by 3.8%, it is still a big swing by our standards.

View our latest analysis for China PengFei Group

The Last 12 Months Of Insider Transactions At China PengFei Group

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 an insider was happy to buy shares at above the current price of HK$1.09. 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 is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Jiaan Wang.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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.

Insider Ownership of China PengFei Group

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 PengFei Group insiders own 41% of the company, currently worth about HK$226m 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.

So What Do The China PengFei Group Insider Transactions Indicate?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about China PengFei Group. 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. Case in point: We've spotted 2 warning signs for China PengFei Group you should be aware of.

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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