Those following along with Powerlong Commercial Management Holdings Limited (HKG:9909) will no doubt be intrigued by the recent purchase of shares by Wa Fong Hoi, Chairman & President of the company, who spent a stonking HK$5.5m on stock at an average price of HK$5.46. While that only increased their holding size by 2.2%, it is still a big swing by our standards.

See our latest analysis for Powerlong Commercial Management Holdings

The Last 12 Months Of Insider Transactions At Powerlong Commercial Management Holdings

Notably, that recent purchase by Wa Fong Hoi is the biggest insider purchase of Powerlong Commercial Management Holdings shares that we've seen in the last year. We do like to see buying, but this purchase was made at well below the current price of HK$6.11. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Powerlong Commercial Management Holdings insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around HK$9.22. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does Powerlong Commercial Management Holdings Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 11% of Powerlong Commercial Management Holdings shares, worth about HK$413m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Powerlong Commercial Management Holdings Insiders?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Powerlong Commercial Management Holdings. One for the watchlist, at least! While we like knowing 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. In terms of investment risks, we've identified 2 warning signs with Powerlong Commercial Management Holdings and understanding them should be part of your investment process.

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. 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.