China Hongguang Holdings Limited (HKG:8646) shareholders (or potential shareholders) will be happy to see that the CEO, Compliance Officer & Executive Director, Jiakun Wei, recently bought a whopping HK$40m worth of stock, at a price of HK$0.40. That purchase boosted their holding by 66%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

Check out our latest analysis for China Hongguang Holdings

The Last 12 Months Of Insider Transactions At China Hongguang Holdings

Notably, that recent purchase by Jiakun Wei is the biggest insider purchase of China Hongguang Holdings shares that we've seen in the last year. Even though the purchase was made at a significantly lower price than the recent price (HK$0.63), we still think insider buying is a positive. 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.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Does China Hongguang Holdings Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. China Hongguang Holdings insiders own 75% of the company, currently worth about HK$189m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About China Hongguang Holdings Insiders?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest China Hongguang Holdings insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing China Hongguang Holdings. At Simply Wall St, we've found that China Hongguang Holdings has 4 warning signs (2 are potentially serious!) that deserve your attention before going any further with your analysis.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.