Stock Analysis

The Chairman of the Board of Aoyuan Healthy Life Group Company Limited (HKG:3662), Zining Guo, Just Bought 5,258% More Shares

SEHK:3662
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Potential Aoyuan Healthy Life Group Company Limited (HKG:3662) shareholders may wish to note that the Chairman of the Board, Zining Guo, recently bought HK$3.1m worth of stock, paying HK$4.88 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 5,258%.

View our latest analysis for Aoyuan Healthy Life Group

The Last 12 Months Of Insider Transactions At Aoyuan Healthy Life Group

In fact, the recent purchase by Zining Guo was the biggest purchase of Aoyuan Healthy Life Group shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is HK$4.89. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.

Aoyuan Healthy Life Group insiders may have bought shares in the last year, but they didn't sell any. 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!

insider-trading-volume
SEHK:3662 Insider Trading Volume January 5th 2021

Aoyuan Healthy Life Group 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.

Insider Ownership of Aoyuan Healthy Life Group

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. From what we can see in our data, insiders own only about HK$1.9m worth of Aoyuan Healthy Life Group shares. However, it's possible that insiders might have an indirect interest through a more complex structure. This level of insider ownership is notably low, and not very encouraging.

So What Does This Data Suggest About Aoyuan Healthy Life Group Insiders?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Aoyuan Healthy Life Group insiders are expecting a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Aoyuan Healthy Life Group.

But note: Aoyuan Healthy Life Group 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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About SEHK:3662

Starjoy Wellness and Travel

Through its subsidiaries, provides property management and commercial operational services in the People's Republic of China.

Excellent balance sheet and good value.

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