The Executive Chairman of China Touyun Tech Group Limited (HKG:1332), Liang Wang, Just Bought 8.8% More Shares

Those following along with China Touyun Tech Group Limited (HKG:1332) will no doubt be intrigued by the recent purchase of shares by Liang Wang, Executive Chairman of the company, who spent a stonking HK$50m on stock at an average price of HK$0.80. While that only increased their holding size by 8.8%, it is still a big swing by our standards.

Check out our latest analysis for China Touyun Tech Group

The Last 12 Months Of Insider Transactions At China Touyun Tech Group

In the last twelve months, the biggest single purchase by an insider was when Non-Executive Director Yuze Tian bought HK$50m worth of shares at a price of HK$0.37 per share. Even though the purchase was made at a significantly lower price than the recent price (HK$0.95), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

While China Touyun Tech Group insiders bought shares during the last year, they didn't sell. They paid about HK$0.51 on average. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. 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!

China Touyun Tech Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of China Touyun Tech 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. We usually like to see fairly high levels of insider ownership. China Touyun Tech Group insiders own about HK$938m worth of shares (which is 38% 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 Do The China Touyun Tech Group Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. 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 Touyun Tech Group. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 3 warning signs for China Touyun Tech Group (of which 1 can't be ignored!) you should know about.

But note: China Touyun Tech 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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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