Insiders Rewarded With CN¥1.3b Addition To Investment As China Qidian Guofeng Holdings Stock Hits HK$5.6b

China Qidian Guofeng Holdings Limited (HKG:1280) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 15%, resulting in a HK$722m rise in the company's market capitalisation, translating to a gain of 545% on their initial investment. In other words, the original CN¥244.5m purchase is now worth CN¥1.58b.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for China Qidian Guofeng Holdings

The Last 12 Months Of Insider Transactions At China Qidian Guofeng Holdings

In the last twelve months, the biggest single purchase by an insider was when Executive Chairman Li Yuan bought HK$97m worth of shares at a price of HK$0.40 per share. We do like to see buying, but this purchase was made at well below the current price of HK$3.08. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months China Qidian Guofeng Holdings insiders were buying shares, but not selling. They paid about HK$0.48 on average. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. 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!

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.

Insider Ownership Of China Qidian Guofeng Holdings

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. China Qidian Guofeng Holdings insiders own 44% of the company, currently worth about HK$2.4b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About China Qidian Guofeng Holdings Insiders?

The fact that there have been no China Qidian Guofeng Holdings insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, China Qidian Guofeng Holdings insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing China Qidian Guofeng Holdings. 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.