Lin Chit Hui Is The Executive Deputy Chairman & CEO of Hengan International Group Company Limited (HKG:1044) And Just Spent CN¥57m On Shares

Those following along with Hengan International Group Company Limited (HKG:1044) will no doubt be intrigued by the recent purchase of shares by Lin Chit Hui, Executive Deputy Chairman & CEO of the company, who spent a stonking HK$57m on stock at an average price of HK$56.50. While that only increased their holding size by 0.4%, it is still a big swing by our standards.

See our latest analysis for Hengan International Group

The Last 12 Months Of Insider Transactions At Hengan International Group

In fact, the recent purchase by Executive Deputy Chairman & CEO Lin Chit Hui was not their only acquisition of Hengan International Group shares this year. Earlier in the year, they paid HK$53.42 per share in a HK$483m purchase. That implies that an insider found the current price of HK$58.40 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. Happily, the Hengan International Group insider decided to buy shares at close to current prices. Lin Chit Hui was the only individual insider to buy shares in the last twelve months.

Lin Chit Hui bought a total of 21.46m shares over the year at an average price of HK$55.46. 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!

Hengan International Group 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 Hengan International Group Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Hengan International Group insiders own about HK$30b worth of shares (which is 44% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Hengan International Group Insiders?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Hengan International Group. One for the watchlist, at least! 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. For example - Hengan International Group has 1 warning sign we think you should be aware of.

Of course Hengan International Group may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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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