Kwok-Lun Fung Bought 11% More Shares In Convenience Retail Asia

Potential Convenience Retail Asia Limited (HKG:831) shareholders may wish to note that the Non-Executive Chairman, Kwok-Lun Fung, recently bought HK$3.3m worth of stock, paying HK$0.66 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 11%.

See our latest analysis for Convenience Retail Asia

The Last 12 Months Of Insider Transactions At Convenience Retail Asia

Notably, that recent purchase by Kwok-Lun Fung is the biggest insider purchase of Convenience Retail Asia shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$0.66). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. 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. The only individual insider to buy over the last year was Kwok-Lun Fung.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership Of Convenience Retail Asia

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. From our data, it seems that Convenience Retail Asia insiders own 9.1% of the company, worth about HK$47m. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Convenience Retail Asia 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. When combined with notable insider ownership, these factors suggest Convenience Retail Asia insiders are well aligned, and that they may think the share price is too low. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we've found that Convenience Retail Asia has 3 warning signs (1 is potentially serious!) that deserve your attention before going any further with your analysis.

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.