Fufeng Group Limited (HKG:546) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 3.8% decline in the stock price. Even after accounting for the recent loss, the CN¥17m worth of stock purchased by them is now worth CN¥24m or in other words, their investment continues to give good returns.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Fufeng Group

Fufeng Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Principal Founder & Executive Chairman Xuechun Li for HK$3.5m worth of shares, at about HK$3.47 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$4.79. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Xuechun Li purchased 5.00m shares over the year. The average price per share was HK$3.33. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Insider Ownership Of Fufeng Group

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Fufeng Group insiders own 41% of the company, worth about HK$5.0b. 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 Fufeng Group Tell Us?

The fact that there have been no Fufeng Group insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like Fufeng Group insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Fufeng Group. While conducting our analysis, we found that Fufeng Group has 1 warning sign and it would be unwise to ignore this.

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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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.