Longfor Group Holdings' Yajun Wu Acquires 3.8% More Stock

Those following along with Longfor Group Holdings Limited (HKG:960) will no doubt be intrigued by the recent purchase of shares by insider Yajun Wu, who spent a stonking HK$1.1b on stock at an average price of HK$9.80. While that only increased their holding size by 3.8%, it is still a big swing by our standards.

Check out our latest analysis for Longfor Group Holdings

The Last 12 Months Of Insider Transactions At Longfor Group Holdings

Notably, that recent purchase by Yajun Wu is the biggest insider purchase of Longfor Group Holdings shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$8.48). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Notably Yajun Wu was also the biggest seller.

Over the last year, we can see that insiders have bought 220.30m shares worth HK$2.1b. But insiders sold 6.71m shares worth HK$81m. In total, Longfor Group Holdings insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Longfor Group 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. We usually like to see fairly high levels of insider ownership. It's great to see that Longfor Group Holdings insiders own 52% of the company, worth about HK$30b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Longfor Group Holdings Tell Us?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Longfor Group Holdings insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Longfor Group Holdings. At Simply Wall St, we've found that Longfor Group Holdings has 4 warning signs (1 shouldn't be ignored!) that deserve your attention before going any further with your analysis.

But note: Longfor Group 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 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.