Insider Buying: The China Harmony Auto Holding Limited (HKG:3836) Executive Chairman of the Board Just Bought 1.1% More Shares

Those following along with China Harmony Auto Holding Limited (HKG:3836) will no doubt be intrigued by the recent purchase of shares by Changge Feng, Executive Chairman of the Board of the company, who spent a stonking HK$25m on stock at an average price of HK$3.23. While that only increased their holding size by 1.1%, it is still a big swing by our standards.

See our latest analysis for China Harmony Auto Holding

The Last 12 Months Of Insider Transactions At China Harmony Auto Holding

In fact, the recent purchase by Changge Feng was the biggest purchase of China Harmony Auto Holding shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of HK$4.03 per share to be enticing. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for China Harmony Auto Holding share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was Changge Feng.

Changge Feng bought a total of 17.27m shares over the year at an average price of HK$3.29. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

China Harmony Auto Holding is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that China Harmony Auto Holding insiders own 45% of the company, worth about HK$2.7b. 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 China Harmony Auto Holding 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 China Harmony Auto Holding. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing China Harmony Auto Holding. At Simply Wall St, we found 2 warning signs for China Harmony Auto Holding that deserve your attention before buying any shares.

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.

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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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