CEO & Executive Director of China Weaving Materials Holdings Picks Up 43% More Stock

Those following along with China Weaving Materials Holdings Limited (HKG:3778) will no doubt be intrigued by the recent purchase of shares by Yongxiang Zheng, CEO & Executive Director of the company, who spent a stonking HK$20m on stock at an average price of HK$0.39. Not only is that a big swing, but it increased their holding size by 43%, which is definitely great to see.

See our latest analysis for China Weaving Materials Holdings

China Weaving Materials Holdings Insider Transactions Over The Last Year

Notably, that recent purchase by Yongxiang Zheng is the biggest insider purchase of China Weaving Materials Holdings shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of HK$0.30. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Yongxiang Zheng was the only individual insider to buy shares in the last twelve months.

The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

China Weaving Materials Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of China Weaving Materials Holdings

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. 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 Weaving Materials Holdings insiders own 50% of the company, currently worth about HK$189m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At China Weaving Materials Holdings Tell Us?

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 we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about China Weaving Materials Holdings. Looks promising! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that China Weaving Materials Holdings is showing 3 warning signs in our investment analysis, and 2 of those are concerning...

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.