Stock Analysis

Insider Buying: The China Tangshang Holdings Limited (HKG:674) Executive Chairman Just Bought 37% More Shares

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Those following along with China Tangshang Holdings Limited (HKG:674) will no doubt be intrigued by the recent purchase of shares by Weiwu Chen, Executive Chairman of the company, who spent a stonking HK$107m on stock at an average price of HK$0.20. Not only is that a big swing, but it increased their holding size by 37%, which is definitely great to see.

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The Last 12 Months Of Insider Transactions At China Tangshang Holdings

Notably, that recent purchase by Weiwu Chen is the biggest insider purchase of China Tangshang Holdings shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is HK$0.20. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for China Tangshang Holdings share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was Weiwu Chen.

Weiwu Chen purchased 605.85m shares over the year. The average price per share was HK$0.21. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

SEHK:674 Insider Trading Volume March 16th 2023

China Tangshang Holdings 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 Tangshang Holdings

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. China Tangshang Holdings insiders own about HK$295m worth of shares (which is 42% 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 Do The China Tangshang Holdings Insider Transactions Indicate?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about China Tangshang Holdings. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing China Tangshang Holdings. For example - China Tangshang Holdings has 3 warning signs we think you should be aware of.

Of course China Tangshang Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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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