VP & Executive Director Lin Xu Just Bought A Handful Of Shares In FriendTimes Inc. (HKG:6820)

Investors who take an interest in FriendTimes Inc. (HKG:6820) should definitely note that the VP & Executive Director, Lin Xu, recently paid HK$2.02 per share to buy HK$995k worth of the stock. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.

Check out our latest analysis for FriendTimes

The Last 12 Months Of Insider Transactions At FriendTimes

In the last twelve months, the biggest single purchase by an insider was when Founder Xiaohuang Jiang bought HK$5.8m worth of shares at a price of HK$2.68 per share. That means that even when the share price was higher than HK$2.12 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months FriendTimes insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does FriendTimes Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. FriendTimes insiders own about HK$2.8b worth of shares (which is 65% 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 Does This Data Suggest About FriendTimes Insiders?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about FriendTimes. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing FriendTimes. For example, FriendTimes has 2 warning signs (and 1 which is concerning) we think you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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