Insider Buying: The Hopefluent Group Holdings Limited (HKG:733) Co-Founder Just Bought 78% More Shares

By
Simply Wall St
Published
April 22, 2020
SEHK:733

Hopefluent Group Holdings Limited (HKG:733) shareholders (or potential shareholders) will be happy to see that the Co-Founder, Wai Fu, recently bought a whopping HK$93m worth of stock, at a price of HK$1.50. That purchase boosted their holding by 78%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

View our latest analysis for Hopefluent Group Holdings

The Last 12 Months Of Insider Transactions At Hopefluent Group Holdings

In fact, the recent purchase by Wai Fu was the biggest purchase of Hopefluent Group Holdings shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than HK$1.40 (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. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Wai Fu was the only individual insider to buy shares in the last twelve months.

The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

SEHK:733 Recent Insider Trading April 23rd 2020
SEHK:733 Recent Insider Trading April 23rd 2020

Hopefluent Group Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Hopefluent Group Holdings 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. Hopefluent Group Holdings insiders own about HK$207m worth of shares. That equates to 22% of the company. 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 Hopefluent Group Holdings Tell Us?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Hopefluent Group Holdings. Nice! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - Hopefluent Group Holdings has 2 warning signs we think you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

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