Wei Zhang Just Bought A Sprinkling of Shares In CPMC Holdings Limited (HKG:906)

Whilst it may not be a huge deal, we thought it was good to see that Wei Zhang, who is a company insider, recently bought HK$552k worth of stock, for HK$3.45 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

Check out 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. Earlier in the year, they paid HK$2.97 per share in a HK$8.9m purchase. So it's clear an insider wanted to buy, at around the current price, which is HK$3.44. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. Happily, the CPMC Holdings insider decided to buy shares at close to current prices. Wei Zhang was the only individual insider to buy during the last year.

Wei Zhang bought a total of 6.16m shares over the year at an average price of HK$3.16. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

CPMC Holdings 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 CPMC Holdings Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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$553m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At CPMC Holdings Tell Us?

It's certainly positive 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 CPMC Holdings. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CPMC Holdings. For example, CPMC Holdings has 2 warning signs (and 1 which is concerning) we think you should know about.

Of course CPMC Holdings 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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