Ching Lau Hui Spends CN¥760k On Qinqin Foodstuffs Group (Cayman) Stock

Whilst it may not be a huge deal, we thought it was good to see that the Qinqin Foodstuffs Group (Cayman) Company Limited (HKG:1583) Executive Chairman of the Board, Ching Lau Hui, recently bought HK$760k worth of stock, for HK$0.76 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 Qinqin Foodstuffs Group (Cayman)

The Last 12 Months Of Insider Transactions At Qinqin Foodstuffs Group (Cayman)

In fact, the recent purchase by Executive Chairman of the Board Ching Lau Hui was not their only acquisition of Qinqin Foodstuffs Group (Cayman) shares this year. They previously made an even bigger purchase of HK$6.6m worth of shares at a price of HK$1.10 per share. That means that an insider was happy to buy shares at above the current price of HK$0.80. 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. Ching Lau Hui was the only individual insider to buy shares in the last twelve months.

Ching Lau Hui purchased 7.86m shares over the year. The average price per share was HK$1.01. 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!

Qinqin Foodstuffs Group (Cayman) is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Qinqin Foodstuffs Group (Cayman) insiders own about HK$392m worth of shares (which is 65% of the company). 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 Does This Data Suggest About Qinqin Foodstuffs Group (Cayman) Insiders?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Qinqin Foodstuffs Group (Cayman). Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Qinqin Foodstuffs Group (Cayman). Be aware that Qinqin Foodstuffs Group (Cayman) is showing 2 warning signs in our investment analysis, and 1 of those shouldn't be ignored...

But note: Qinqin Foodstuffs Group (Cayman) 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.