Stock Analysis

CEO & Executive Chairman of Pizu Group Holdings Picks Up 976% More Stock

Published
SEHK:8053

Those following along with Pizu Group Holdings Limited (HKG:8053) will no doubt be intrigued by the recent purchase of shares by Tianyi Ma, CEO & Executive Chairman of the company, who spent a stonking HK$20m on stock at an average price of HK$0.37. That increased their holding by a full 976%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.

View our latest analysis for Pizu Group Holdings

Pizu Group Holdings Insider Transactions Over The Last Year

In fact, the recent purchase by Tianyi Ma was the biggest purchase of Pizu Group Holdings shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of HK$0.38. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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 Pizu Group Holdings insiders decided to buy shares at close to current prices.

While Pizu Group Holdings insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

SEHK:8053 Insider Trading Volume September 25th 2023

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Pizu Group Holdings

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Pizu Group Holdings insiders own about HK$1.1b worth of shares (which is 83% 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.

What Might The Insider Transactions At Pizu Group Holdings Tell Us?

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 Pizu Group Holdings. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Pizu Group Holdings. While conducting our analysis, we found that Pizu Group Holdings has 1 warning sign and it would be unwise to ignore it.

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.