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$150k to buy stock, at HK$0.99 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

See our latest analysis for China Success Finance Group Holdings

China Success Finance Group Holdings Insider Transactions Over The Last Year

Notably, that recent purchase by Executive Chairman Tiewei Zhang was not the only time they bought China Success Finance Group Holdings shares this year. They previously made an even bigger purchase of HK$428k worth of shares at a price of HK$1.09 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$1.00). 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. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Tiewei Zhang.

Tiewei Zhang purchased 984.00k shares over the year. The average price per share was HK$0.98. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

China Success Finance Group Holdings 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 China Success Finance Group Holdings Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that China Success Finance Group Holdings insiders own 56% of the company, worth about HK$298m. 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 Do The China Success Finance Group Holdings Insider Transactions Indicate?

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. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about China Success Finance Group Holdings. Looks promising! 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 2 warning signs (1 is concerning!) that you ought to be aware of before buying any shares in China Success Finance Group Holdings.

But note: China Success Finance Group 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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