Whilst it may not be a huge deal, we thought it was good to see that the High Fashion International Limited (HKG:608) Co-Founder & Executive Chairman, Foo Wah Lam, recently bought HK$78k worth of stock, for HK$1.55 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

Check out our latest analysis for High Fashion International

The Last 12 Months Of Insider Transactions At High Fashion International

Co-Founder & Executive Chairman Foo Wah Lam previously made an even bigger purchase of HK$355k worth of shares at a price of HK$1.40 per share. So it's clear an insider wanted to buy, at around the current price, which is HK$1.55. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for High Fashion International share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was Foo Wah Lam.

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. By clicking on the graph below, you can see the precise details of each insider transaction!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does High Fashion International Boast High Insider Ownership?

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. High Fashion International insiders own about HK$267m worth of shares (which is 56% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

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

It is good to see the recent insider purchase. 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 High Fashion International. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing High Fashion International. While conducting our analysis, we found that High Fashion International has 4 warning signs and it would be unwise to ignore these.

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.