Investors who take an interest in Tiangong International Company Limited (HKG:826) should definitely note that the CEO & Chief Investment Officer, Zefeng Zhu, recently paid HK$2.18 per share to buy HK$1.1m worth of the stock. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

View our latest analysis for Tiangong International

The Last 12 Months Of Insider Transactions At Tiangong International

Notably, that recent purchase by CEO & Chief Investment Officer Zefeng Zhu was not the only time they bought Tiangong International shares this year. Earlier in the year, they paid HK$4.79 per share in a HK$4.8m purchase. That means that even when the share price was higher than HK$2.18 (the recent price), an insider wanted to purchase shares. 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 encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Zefeng Zhu was the only individual insider to buy during the last year.

Zefeng Zhu purchased 7.50m shares over the year. The average price per share was HK$3.86. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Does Tiangong International 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. 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's great to see that Tiangong International insiders own 53% of the company, worth about HK$3.2b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Tiangong International Tell Us?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Tiangong International. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tiangong International. For example - Tiangong International has 1 warning sign we think you should be aware of.

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.