Insider Spends HK$300m Buying More Shares In China HK Power Smart Energy Group

China HK Power Smart Energy Group Limited (HKG:931) shareholders (or potential shareholders) will be happy to see that the Chairman, Che Kin Kan, recently bought a whopping HK$300m worth of stock, at a price of HK$0.43. Not only is that a big swing, but it increased their holding size by 33%, which is definitely great to see.

Check out our latest analysis for China HK Power Smart Energy Group

China HK Power Smart Energy Group Insider Transactions Over The Last Year

Notably, that recent purchase by Che Kin Kan is the biggest insider purchase of China HK Power Smart Energy Group shares that we've seen in the last year. That implies that an insider found the current price of HK$0.47 per share to be enticing. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider bought shares at close to current prices. The only individual insider to buy over the last year was Che Kin Kan. We note that Che Kin Kan was also the biggest seller.

Che Kin Kan bought a total of 782.75m shares over the year at an average price of HK$0.43. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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 China HK Power Smart Energy Group Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. China HK Power Smart Energy Group insiders own about HK$1.3b worth of shares (which is 42% of the company). 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 HK Power Smart Energy Group Insider Transactions Indicate?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about China HK Power Smart Energy Group. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 3 warning signs (2 shouldn't be ignored!) that you ought to be aware of before buying any shares in China HK Power Smart Energy Group.

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.