Insider Buyers At Fengyinhe Holdings Sitting On CN¥318m Profit

Insiders who bought Fengyinhe Holdings Limited (HKG:8030) stock lover the last 12 months are probably not as affected by last week’s 16% loss. After taking the recent loss into consideration, the CN¥31.8m worth of stock they bought is now worth CN¥349.5m, indicating that their investment yielded a positive return.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

We've discovered 3 warning signs about Fengyinhe Holdings. View them for free.

The Last 12 Months Of Insider Transactions At Fengyinhe Holdings

Over the last year, we can see that the biggest insider purchase was by insider Chengjun Niu for HK$28m worth of shares, at about HK$0.25 per share. Even though the purchase was made at a significantly lower price than the recent price (HK$3.05), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Over the last year, we can see that insiders have bought 114.59m shares worth HK$32m. On the other hand they divested 4.14m shares, for HK$1.2m. In the last twelve months there was more buying than selling by Fengyinhe Holdings insiders. Their average price was about HK$0.28. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Fengyinhe Holdings

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Fengyinhe Holdings

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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Fengyinhe Holdings insiders own 53% of the company, worth about HK$545m. 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 Fengyinhe Holdings Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Fengyinhe Holdings shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like Fengyinhe Holdings insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Fengyinhe Holdings. You'd be interested to know, that we found 3 warning signs for Fengyinhe Holdings and we suggest you have a look.

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 of direct interests only, but not derivative transactions or indirect interests.

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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.