Foo Wah Lam Is The Co-Founder & Executive Chairman of High Fashion International Limited (HKG:608) And Just Spent HK$290k On Shares

Whilst it may not be a huge deal, we thought it was good to see that the High Fashion International Limited (HKG:608) Co-Founder & Executive Chairman, Foo Wah Lam, recently bought HK$290k worth of stock, for HK$1.45 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

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The Last 12 Months Of Insider Transactions At High Fashion International

In fact, the recent purchase by Co-Founder & Executive Chairman Foo Wah Lam was not their only acquisition of High Fashion International shares this year. Earlier in the year, they paid HK$1.50 per share in a HK$1.2m purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$1.45). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Foo Wah Lam was the only individual insider to buy during the last year.

Foo Wah Lam purchased 3.17m shares over the year. The average price per share was HK$1.49. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of High Fashion International

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. High Fashion International insiders own 53% of the company, currently worth about HK$235m 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.

So What Does This Data Suggest About High Fashion International Insiders?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest High Fashion International insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing High Fashion International. For instance, we've identified 5 warning signs for High Fashion International (2 shouldn't be ignored) you should be aware of.

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, but not derivative transactions.

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