The Executive Chairman of China Success Finance Group Holdings Limited (HKG:3623), Tiewei Zhang, Just Bought A Few More Shares

Even if it's not a huge purchase, we think it was good to see that Tiewei Zhang, the Executive Chairman of China Success Finance Group Holdings Limited (HKG:3623) recently shelled out HK$73k to buy stock, at HK$1.04 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

See our latest analysis for China Success Finance Group Holdings

China Success Finance Group Holdings Insider Transactions Over The Last Year

Executive Chairman Tiewei Zhang previously made an even bigger purchase of HK$428k worth of shares at a price of HK$1.09 per share. That means that an insider was happy to buy shares at above the current price of HK$1.01. 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 always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Tiewei Zhang was the only individual insider to buy during the last year.

Tiewei Zhang bought 752.00k shares over the last 12 months at an average price of HK$0.98. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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.

Does China Success Finance Group Holdings Boast High Insider Ownership?

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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that China Success Finance Group Holdings insiders own 56% of the company, worth about HK$301m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About China Success Finance Group Holdings Insiders?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest China Success Finance Group Holdings insiders are well aligned, and quite possibly think the share price is too low. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing China Success Finance Group Holdings. Our analysis shows 3 warning signs for China Success Finance Group Holdings (1 can't be ignored!) and we strongly recommend you look at these before investing.

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, 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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