China Qidian Guofeng Holdings Insiders Placed Bullish Bets Worth CN¥274.7m

Quite a few insiders have dramatically grown their holdings in China Qidian Guofeng Holdings Limited (HKG:1280) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for China Qidian Guofeng Holdings

China Qidian Guofeng Holdings Insider Transactions Over The Last Year

The Executive Chairman Li Yuan made the biggest insider purchase in the last 12 months. That single transaction was for HK$97m worth of shares at a price of HK$0.40 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$2.65. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Over the last year, we can see that insiders have bought 555.82m shares worth HK$275m. On the other hand they divested 6.98m shares, for HK$3.8m. In the last twelve months there was more buying than selling by China Qidian Guofeng Holdings insiders. The average buy price was around HK$0.49. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

China Qidian Guofeng Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At China Qidian Guofeng Holdings Have Bought Stock Recently

Over the last quarter, China Qidian Guofeng Holdings insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought HK$152m worth of shares. This could be interpreted as suggesting a positive outlook.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that China Qidian Guofeng Holdings insiders own 44% of the company, worth about HK$2.1b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At China Qidian Guofeng Holdings Tell Us?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about China Qidian Guofeng Holdings. One for the watchlist, at least! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - China Qidian Guofeng 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 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.