Guangyang Zhang Buys Handful Of Shares In FAR International Holdings Group

Potential FAR International Holdings Group Company Limited (HKG:2516) shareholders may wish to note that the Deputy GM & Executive Director, Guangyang Zhang, recently bought HK$1.9m worth of stock, paying HK$0.90 for each share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

FAR International Holdings Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Secretary of the Board & Executive Director Jiong Zhu for HK$2.8m worth of shares, at about HK$0.80 per share. So it's clear an insider wanted to buy, at around the current price, which is HK$0.86. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for FAR International Holdings Group share holders is that insiders were buying at near the current price.

In the last twelve months insiders purchased 5.54m shares for HK$4.6m. On the other hand they divested 2.53m shares, for HK$2.3m. In total, FAR International Holdings Group insiders bought more than they sold over the last year. 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!

Check out our latest analysis for FAR International Holdings Group

FAR International Holdings Group is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that FAR International Holdings Group insiders own 33% of the company, worth about HK$223m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The FAR International Holdings Group Insider Transactions Indicate?

The stark truth for FAR International Holdings Group is that there has been more insider selling than insider buying in the last three months. On the other hand, the insider transactions over the last year are encouraging. And insider ownership remains quite considerable. So we're not too bothered by recent selling. While it's good to be aware of 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. At Simply Wall St, we found 2 warning signs for FAR International Holdings Group that deserve your attention before buying any shares.

But note: FAR International Holdings 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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.