Even if it's not a huge purchase, we think it was good to see that Foo Wah Lam, the Co-Founder & Executive Chairman of High Fashion International Limited (HKG:608) recently shelled out HK$89k to buy stock, at HK$1.48 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

View our latest analysis for High Fashion International

The Last 12 Months Of Insider Transactions At High Fashion International

In fact, the recent purchase by Co-Founder & Executive Chairman Foo Wah Lam was not their only acquisition of High Fashion International shares this year. They previously made an even bigger purchase of HK$355k worth of shares at a price of HK$1.40 per share. That implies that an insider found the current price of HK$1.52 per share to be enticing. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for High Fashion International share holders is that an insider was buying at near the current price. Foo Wah Lam was the only individual insider to buy during the last year.

Foo Wah Lam bought a total of 2.64m shares over the year at an average price of HK$1.47. 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!

High Fashion International is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of High Fashion International

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that High Fashion International insiders own 56% of the company, worth about HK$262m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About High Fashion International Insiders?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest High Fashion International insiders are well aligned, and quite possibly think the share price is too low. 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. Case in point: We've spotted 3 warning signs for High Fashion International you should be aware of.

Of course High Fashion International may not be the best stock to buy. So you may wish to see this free collection of high quality 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.