Executive Chairman & CEO Ming Fan Wang Just Bought 5.5% More Shares In China Boton Group Company Limited (HKG:3318)

Those following along with China Boton Group Company Limited (HKG:3318) will no doubt be intrigued by the recent purchase of shares by Ming Fan Wang, Executive Chairman & CEO of the company, who spent a stonking HK$34m on stock at an average price of HK$1.70. While that only increased their holding size by 5.5%, it is still a big swing by our standards.

View our latest analysis for China Boton Group

China Boton Group Insider Transactions Over The Last Year

In fact, the recent purchase by Executive Chairman & CEO Ming Fan Wang was not their only acquisition of China Boton Group shares this year. They previously made an even bigger purchase of HK$87m worth of shares at a price of HK$1.94 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$1.78). It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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. Ming Fan Wang was the only individual insider to buy shares in the last twelve months.

Ming Fan Wang purchased 185.67m shares over the year. The average price per share was HK$1.62. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

China Boton 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

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 35% of China Boton Group shares, worth about HK$682m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The China Boton Group Insider Transactions Indicate?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about China Boton Group. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing China Boton Group. Case in point: We've spotted 3 warning signs for China Boton Group you should be aware of.

Of course China Boton 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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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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