The Executive Chairman of the Board of U Banquet Group Holding Limited (HKG:1483), Kangqiao Sang, Just Bought 7.3% More Shares

Those following along with U Banquet Group Holding Limited (HKG:1483) will no doubt be intrigued by the recent purchase of shares by Kangqiao Sang, Executive Chairman of the Board of the company, who spent a stonking HK$15m on stock at an average price of HK$1.10. While that only increased their holding size by 7.3%, it is still a big swing by our standards.

Check out our latest analysis for U Banquet Group Holding

The Last 12 Months Of Insider Transactions At U Banquet Group Holding

Notably, that recent purchase by Kangqiao Sang is the biggest insider purchase of U Banquet Group Holding shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of HK$1.16. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for U Banquet Group Holding share holders is that an insider was buying at near the current price. Kangqiao Sang 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

U Banquet Group Holding 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.

Does U Banquet Group Holding Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. U Banquet Group Holding insiders own 58% of the company, currently worth about HK$509m 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 U Banquet Group Holding Tell Us?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest U Banquet Group Holding insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing U Banquet Group Holding. For example - U Banquet Group Holding has 1 warning sign we think you should be aware of.

Of course U Banquet Group Holding 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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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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