Trade Alert: Wei Zhang At CPMC Holdings Limited (HKG:906), Has Just Spent CN¥1.7m Buying A Small Number of Shares

Potential CPMC Holdings Limited (HKG:906) shareholders may wish to note that insider Wei Zhang recently bought HK$1.7m worth of stock, paying HK$4.35 for each share. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for CPMC Holdings

CPMC Holdings Insider Transactions Over The Last Year

In fact, the recent purchase by insider Wei Zhang was not their only acquisition of CPMC Holdings shares this year. They previously made an even bigger purchase of HK$8.9m worth of shares at a price of HK$2.97 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$4.63. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Wei Zhang bought 6.56m shares over the last 12 months at an average price of HK$3.23. 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!

CPMC Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does CPMC Holdings 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. It appears that CPMC Holdings insiders own 15% of the company, worth about HK$730m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At CPMC Holdings Tell Us?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest CPMC Holdings insiders are well aligned, and quite possibly think the share price is too low. Looks promising! 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. To that end, you should learn about the 3 warning signs we've spotted with CPMC Holdings (including 1 which is concerning).

But note: CPMC Holdings 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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