Trade Alert: Weiqi Wu At Quanzhou Huixin Micro-Credit Co., Ltd. (HKG:1577), Has Just Spent CN¥433k Buying 1.3% More Shares

Even if it's not a huge purchase, we think it was good to see that Weiqi Wu, a Quanzhou Huixin Micro-Credit Co., Ltd. (HKG:1577) insider, recently shelled out HK$433k to buy stock, at HK$1.17 per share. However, it only increased their shares held by 1.3%, and it wasn't a huge purchase by absolute value, either.

Check out our latest analysis for Quanzhou Huixin Micro-Credit

Quanzhou Huixin Micro-Credit Insider Transactions Over The Last Year

Notably, that recent purchase by Weiqi Wu is the biggest insider purchase of Quanzhou Huixin Micro-Credit 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$1.20. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider bought shares at close to current prices. Weiqi Wu was the only individual insider to buy during the last year.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Quanzhou Huixin Micro-Credit is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Quanzhou Huixin Micro-Credit insiders own about HK$223m worth of shares. That equates to 27% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Quanzhou Huixin Micro-Credit Tell Us?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Quanzhou Huixin Micro-Credit insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! 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. Our analysis shows 3 warning signs for Quanzhou Huixin Micro-Credit (1 is potentially serious!) and we strongly recommend you look at these before investing.

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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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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