Whilst it may not be a huge deal, we thought it was good to see that the China Success Finance Group Holdings Limited (HKG:3623) Executive Chairman, Tiewei Zhang, recently bought HK$184k worth of stock, for HK$0.73 per share. 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 China Success Finance Group Holdings
The Last 12 Months Of Insider Transactions At China Success Finance Group Holdings
Over the last year, we can see that the biggest insider purchase was by Executive Director Kaiying Xu for HK$2.7m worth of shares, at about HK$1.09 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$0.72). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. Notably Kaiying Xu was also the biggest seller.
Over the last year, we can see that insiders have bought 9.48m shares worth HK$10m. But insiders sold 2.02m shares worth HK$2.0m. In total, China Success Finance Group Holdings insiders bought more than they sold over the last year. 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!
SEHK:3623 Insider Trading Volume April 18th 2023
China Success Finance Group Holdings 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
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. China Success Finance Group Holdings insiders own about HK$228m worth of shares (which is 57% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At China Success Finance Group Holdings Tell Us?
It is good to see the recent insider purchase. 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 Success Finance Group Holdings. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing China Success Finance Group Holdings. Be aware that China Success Finance Group Holdings is showing 2 warning signs in our investment analysis, and 1 of those is a bit concerning...
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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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