An Insider Of China Qinfa Group Picks Up 13% More Stock

Those following along with China Qinfa Group Limited (HKG:866) will no doubt be intrigued by the recent purchase of shares by insider Jihua Xu, who spent a stonking HK$148m on stock at an average price of HK$0.77. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 13%.

View our latest analysis for China Qinfa Group

The Last 12 Months Of Insider Transactions At China Qinfa Group

Notably, that recent purchase by Jihua Xu is the biggest insider purchase of China Qinfa Group shares that we've seen in the last year. That implies that an insider found the current price of HK$0.78 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. In this case we're pleased to report that the insider bought shares at close to current prices. Jihua Xu was the only individual insider to buy during the last year.

Jihua Xu bought 364.99m shares over the last 12 months at an average price of HK$0.77. 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!

China Qinfa Group is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

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 Qinfa Group insiders own 70% of the company, worth about HK$1.4b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The China Qinfa Group Insider Transactions Indicate?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest China Qinfa Group insiders are well aligned, and quite possibly think the share price is too low. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with China Qinfa Group and understanding them should be part of your investment process.

But note: China Qinfa Group 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 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.

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