Even if it’s not a huge purchase, we think it was good to see that Guang Bao Meng, the Executive Chairman of Huajun International Group Limited (HKG:377) recently shelled out CN¥72k to buy stock, at CN¥10.48 per share. However, we do note that it only increased their holding by 0.02%, and it wasn’t a huge purchase by absolute value, either.
The Last 12 Months Of Insider Transactions At Huajun International Group
Notably, that recent purchase by Executive Chairman Guang Bao Meng was not the only time they bought Huajun International Group shares this year. Earlier in the year, they paid HK$14.88 per share in a HK$3.7m purchase. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being HK$13.10). It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Guang Bao Meng.
Guang Bao Meng purchased 257360 shares over the year. The average price per share was HK$14.71. You can see the insider transactions (by 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.
Does Huajun International Group Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Huajun International Group insiders own about HK$593m worth of shares (which is 74% of the company). 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 Does This Data Suggest About Huajun International Group Insiders?
It’s certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Huajun International Group. One for the watchlist, at least! To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.
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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.