CFO & Executive Director of China Outfitters Holdings Picks Up 28% More Stock

Investors who take an interest in China Outfitters Holdings Limited (HKG:1146) should definitely note that the CFO & Executive Director, Xiaoyun Huang, recently paid HK$0.024 per share to buy HK$2.2m worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 28%.

See our latest analysis for China Outfitters Holdings

The Last 12 Months Of Insider Transactions At China Outfitters Holdings

Notably, that recent purchase by Xiaoyun Huang is the biggest insider purchase of China Outfitters Holdings shares that we've seen in the last year. We do like to see buying, but this purchase was made at well below the current price of HK$0.039. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Xiaoyun Huang bought 143.16m shares over the last 12 months at an average price of HK$0.025. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

China Outfitters 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 Outfitters Holdings

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that China Outfitters Holdings insiders own 47% of the company, worth about HK$63m. 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 China Outfitters Holdings Insiders?

It's certainly positive 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 China Outfitters 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. Case in point: We've spotted 3 warning signs for China Outfitters Holdings you should be aware of, and 2 of these shouldn't be ignored.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 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.