Hopeful Week For Insiders Who Bought CN¥4.64m Of FAR International Holdings Group Stock

Insiders who bought CN¥4.64m worth of FAR International Holdings Group Company Limited (HKG:2516) stock in the last year have seen some of their losses recouped as the stock gained 20% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling CN¥653k.

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.

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The Last 12 Months Of Insider Transactions At FAR International Holdings Group

The Secretary of the Board & Executive Director Jiong Zhu made the biggest insider purchase in the last 12 months. That single transaction was for HK$2.8m worth of shares at a price of HK$0.80 each. That means that an insider was happy to buy shares at above the current price of HK$0.72. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Over the last year, we can see that insiders have bought 5.54m shares worth HK$4.6m. But they sold 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for FAR International Holdings Group

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

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. Insiders own 33% of FAR International Holdings Group shares, worth about HK$186m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At FAR International Holdings Group Tell Us?

The fact that there have been no FAR International Holdings Group 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, FAR International Holdings Group 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 FAR International Holdings Group. At Simply Wall St, we found 3 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.

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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.