The Executive Chairman of Golden Power Group Holdings Limited (HKG:3919), King Tien Chu, Just Bought 1.4% More Shares

Potential Golden Power Group Holdings Limited (HKG:3919) shareholders may wish to note that the Executive Chairman, King Tien Chu, recently bought HK$830k worth of stock, paying HK$0.41 for each share. Although the purchase only increased their holding by 1.4%, it is still a solid purchase in our view.

View our latest analysis for Golden Power Group Holdings

Golden Power Group Holdings Insider Transactions Over The Last Year

Notably, that recent purchase by Executive Chairman King Tien Chu was not the only time they bought Golden Power Group Holdings shares this year. Earlier in the year, they paid HK$0.40 per share in a HK$1.9m purchase. That means that an insider was happy to buy shares at around the current price of HK$0.41. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Golden Power Group Holdings insider decided to buy shares at close to current prices. King Tien Chu was the only individual insider to buy during the last year.

King Tien Chu bought a total of 9.50m shares over the year at an average price of HK$0.41. 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!

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

Does Golden Power Group Holdings Boast High 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. Golden Power Group Holdings insiders own about HK$57m worth of shares (which is 58% of the company). 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 Does This Data Suggest About Golden Power Group Holdings Insiders?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Golden Power Group Holdings insiders are well aligned, and quite possibly think the share price is too low. Nice! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - Golden Power Group Holdings has 4 warning signs we think you should be aware of.

But note: Golden Power Group Holdings 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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