Ziming Yang Is The Founder of Cabbeen Fashion Limited (HKG:2030) And Just Spent CN¥3.0m On Shares

Investors who take an interest in Cabbeen Fashion Limited (HKG:2030) should definitely note that the Founder, Ziming Yang, recently paid HK$2.80 per share to buy HK$3.0m worth of the stock. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.

Check out our latest analysis for Cabbeen Fashion

The Last 12 Months Of Insider Transactions At Cabbeen Fashion

Notably, that recent purchase by Founder Ziming Yang was not the only time they bought Cabbeen Fashion shares this year. They previously made an even bigger purchase of HK$7.1m worth of shares at a price of HK$1.96 per share. We do like to see buying, but this purchase was made at well below the current price of HK$2.82. 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.

Ziming Yang purchased 25.53m shares over the year. The average price per share was HK$2.35. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Cabbeen Fashion is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Cabbeen Fashion insiders own 61% of the company, worth about HK$1.1b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Cabbeen Fashion Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. 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 Cabbeen Fashion. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Cabbeen Fashion. At Simply Wall St, we've found that Cabbeen Fashion has 2 warning signs (1 is a bit concerning!) that deserve your attention before going any further with your analysis.

But note: Cabbeen Fashion 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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This article by Simply Wall St is general in nature. 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.
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