Trade Alert: The Executive Director & CFO Of Far East Horizon Limited (HKG:3360), Mingzhe Wang, Has Just Spent CN¥1.4m Buying 17% More Shares

Investors who take an interest in Far East Horizon Limited (HKG:3360) should definitely note that the Executive Director & CFO, Mingzhe Wang, recently paid HK$6.90 per share to buy HK$1.4m worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 17%.

View our latest analysis for Far East Horizon

Far East Horizon Insider Transactions Over The Last Year

In fact, the recent purchase by Mingzhe Wang was the biggest purchase of Far East Horizon shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is HK$6.93. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Far East Horizon share holders is that an insider was buying at near the current price. Mingzhe Wang was the only individual insider to buy during the last year.

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!

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).

Does Far East Horizon Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Far East Horizon insiders own 0.4% of the company, worth about HK$115m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Far East Horizon Insider Transactions Indicate?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Far East Horizon. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Far East Horizon. When we did our research, we found 3 warning signs for Far East Horizon (1 is a bit concerning!) that we believe deserve your full attention.

But note: Far East Horizon 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.

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.

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