Foo Wah Lam Is The Co-Founder & Executive Chairman of High Fashion International Limited (HKG:608) And Just Spent HK$693k On Shares

Even if it's not a huge purchase, we think it was good to see that Foo Wah Lam, the Co-Founder & Executive Chairman of High Fashion International Limited (HKG:608) recently shelled out HK$693k to buy stock, at 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.

View our latest analysis for High Fashion International

The Last 12 Months Of Insider Transactions At High Fashion International

Notably, that recent purchase by Co-Founder & Executive Chairman Foo Wah Lam was not the only time they bought High Fashion International shares this year. Earlier in the year, they paid HK$1.50 per share in a HK$1.2m purchase. That means that even when the share price was higher than HK$1.45 (the recent price), an insider wanted to purchase shares. 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. Foo Wah Lam was the only individual insider to buy during the last year.

Foo Wah Lam bought a total of 4.18m shares over the year at an average price of HK$1.48. 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

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's great to see that High Fashion International insiders own 53% of the company, worth about HK$236m. 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 Do The High Fashion International Insider Transactions Indicate?

The recent insider purchase is heartening. 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 High Fashion International. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 5 warning signs (2 are a bit unpleasant!) that you ought to be aware of before buying any shares in High Fashion International.

Of course High Fashion International may not be the best stock to buy. So you may wish to see this free collection of high quality 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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