Insider Buying: The China Huirong Financial Holdings Limited (HKG:1290) CFO, Executive Director & GM of Technology Finance Business Division Just Bought 33% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the China Huirong Financial Holdings Limited (HKG:1290) CFO, Executive Director & GM of Technology Finance Business Division, Changsong Zhang, recently bought HK$248k worth of stock, for HK$0.49 per share. That purchase might not be huge but it did increase their holding by 33%.

Check out our latest analysis for China Huirong Financial Holdings

The Last 12 Months Of Insider Transactions At China Huirong Financial Holdings

The Independent Non-Executive Director, Huaqiao Zhang, made the biggest insider sale in the last 12 months. That single transaction was for HK$878k worth of shares at a price of HK$1.05 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of HK$0.45. So it may not shed much light on insider confidence at current levels. Huaqiao Zhang was the only individual insider to sell over the last year.

Huaqiao Zhang ditched 982.00k shares over the year. The average price per share was CN¥1.05. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does China Huirong Financial Holdings Boast High Insider Ownership?

Many investors like to check how much of a company is owned by 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 Huirong Financial Holdings insiders own 54% of the company, currently worth about HK$263m 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 Huirong Financial Holdings Tell Us?

It is good to see the recent insider purchase. But we can't say the same for the transactions over the last 12 months. The recent buying by an insider , along with high insider ownership, suggest that China Huirong Financial Holdings insiders are fairly aligned, and optimistic. 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. To help with this, we've discovered 5 warning signs (1 makes us a bit uncomfortable!) that you ought to be aware of before buying any shares in China Huirong Financial Holdings.

But note: China Huirong Financial Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, 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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