Insiders Of Qing Hua Holding Group Reap Rewards After Their Investment Jumps Another HK$11m

Qing Hua Holding Group Company Limited (HKG:8082) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 18% resulting in a HK$36m addition to the company’s market value. As a result, the stock they originally bought for HK$7.60m is now worth HK$18.2m.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Qing Hua Holding Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Pu Chen bought HK$7.6m worth of shares at a price of HK$0.038 per share. We do like to see buying, but this purchase was made at well below the current price of HK$0.091. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Qing Hua Holding Group

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Are Qing Hua Holding Group Insiders Buying Or Selling?

Over the last three months, we've seen a bit of insider selling at Qing Hua Holding Group. Independent Non Executive Director Wai Man Chan sold just HK$49k worth of shares in that time. It's not great to see insider selling, nor the lack of recent buyers. But the amount sold isn't enough for us to put any weight on it.

Does Qing Hua Holding Group Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 33% of Qing Hua Holding Group shares, worth about HK$78m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Qing Hua Holding Group Insider Transactions Indicate?

Our data shows a little more insider selling, but no insider buying, in the last three months. But the sales were small, so we're not concerned. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Qing Hua Holding Group insiders are doubting the company, and they do own shares. 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 Qing Hua Holding Group (of which 1 is concerning!) 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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.