Whilst it may not be a huge deal, we thought it was good to see that the China Weaving Materials Holdings Limited (HKG:3778) CEO & Executive Director, Yongxiang Zheng, recently bought HK$720k worth of stock, for HK$0.48 per share. Although the purchase is not a big one, increasing their shareholding by only 1.4%, it can be interpreted as a good sign.

See our latest analysis for China Weaving Materials Holdings

The Last 12 Months Of Insider Transactions At China Weaving Materials Holdings

Notably, that recent purchase by CEO & Executive Director Yongxiang Zheng was not the only time they bought China Weaving Materials Holdings shares this year. Earlier in the year, they paid HK$0.52 per share in a HK$1.1m purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$0.46). 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. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Yongxiang Zheng was the only individual insider to buy shares in the last twelve months.

Yongxiang Zheng purchased 20.07m shares over the year. The average price per share was HK$0.49. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of China Weaving Materials Holdings

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. We usually like to see fairly high levels of insider ownership. It's great to see that China Weaving Materials Holdings insiders own 50% of the company, worth about HK$287m. 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 Do The China Weaving Materials Holdings Insider Transactions Indicate?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about China Weaving Materials Holdings. Looks promising! 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. You'd be interested to know, that we found 2 warning signs for China Weaving Materials Holdings and we suggest you have a look.

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.