Pleasing Signs As A Number Of Insiders Buy Huiyuan Cowins Technology Group Stock

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Huiyuan Cowins Technology Group Limited's (HKG:1116) instance, it's good news for shareholders.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Huiyuan Cowins Technology Group

Over the last year, we can see that the biggest insider purchase was by Executive Chairman Yun Kit Ip for HK$562k worth of shares, at about HK$0.37 per share. That means that an insider was happy to buy shares at around the current price of HK$0.38. 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. The good news for Huiyuan Cowins Technology Group share holders is that insiders were buying at near the current price.

Huiyuan Cowins Technology Group insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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 Huiyuan Cowins Technology Group

Huiyuan Cowins Technology 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 Of Huiyuan Cowins Technology Group

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Huiyuan Cowins Technology Group insiders own 71% of the company, currently worth about HK$578m based on the recent share price. 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 Huiyuan Cowins Technology Group Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Huiyuan Cowins Technology Group insiders think the business has merit. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To that end, you should learn about the 3 warning signs we've spotted with Huiyuan Cowins Technology Group (including 2 which don't sit too well with us).

Of course Huiyuan Cowins Technology 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 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.