China Weaving Materials Holdings Limited (HKG:3778) shareholders (or potential shareholders) will be happy to see that the CEO & Executive Director, Yongxiang Zheng, recently bought a whopping HK$20m worth of stock, at a price of HK$0.39. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 43%.

Check out our latest analysis for China Weaving Materials Holdings

China Weaving Materials Holdings Insider Transactions Over The Last Year

Notably, that recent purchase by Yongxiang Zheng is the biggest insider purchase of China Weaving Materials Holdings shares that we've seen in the last year. That means that even when the share price was higher than HK$0.30 (the recent price), an insider wanted to purchase shares. 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. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Yongxiang Zheng.

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!

China Weaving Materials 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 Weaving Materials 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. 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 China Weaving Materials Holdings insiders own 50% of the company, worth about HK$189m. 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 China Weaving Materials Holdings Tell Us?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about China Weaving Materials Holdings. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, China Weaving Materials Holdings has 3 warning signs (and 2 which are potentially serious) we think you should know about.

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 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.