Jianwei Wu Bought 59% More Shares In Cornerstone Technologies Holdings

Cornerstone Technologies Holdings Limited (HKG:8391) shareholders (or potential shareholders) will be happy to see that the Non-Executive Co-Chairman of the Board, Jianwei Wu, recently bought a whopping HK$16m worth of stock, at a price of HK$0.82. That purchase boosted their holding by 59%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

Check out our latest analysis for Cornerstone Technologies Holdings

Cornerstone Technologies Holdings Insider Transactions Over The Last Year

Notably, that recent purchase by Jianwei Wu is the biggest insider purchase of Cornerstone Technologies Holdings shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$0.55). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months Cornerstone Technologies Holdings insiders were buying shares, but not selling. Their average price was about HK$1.03. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Cornerstone Technologies Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

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. It appears that Cornerstone Technologies Holdings insiders own 22% of the company, worth about HK$105m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Cornerstone Technologies Holdings Insiders?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Cornerstone Technologies Holdings. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Cornerstone Technologies Holdings is showing 3 warning signs in our investment analysis, and 1 of those can't be ignored...

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.