Changsha Broad Homes Industrial Group Co., Ltd. (HKG:2163) shareholders (or potential shareholders) will be happy to see that the Founder & Executive Chairman, Jian Zhang, recently bought a whopping HK$159m worth of stock, at a price of HK$20.00. While that only increased their holding size by 8.0%, it is still a big swing by our standards.
Check out our latest analysis for Changsha Broad Homes Industrial Group
Changsha Broad Homes Industrial Group Insider Transactions Over The Last Year
Notably, that recent purchase by Jian Zhang is the biggest insider purchase of Changsha Broad Homes Industrial Group shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$8.78). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Jian Zhang was the only individual insider to buy during the last year.
Jian Zhang bought a total of 8.27m shares over the year at an average price of HK$19.61. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!SEHK:2163 Insider Trading Volume August 1st 2022
Changsha Broad Homes Industrial Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Changsha Broad Homes Industrial Group insiders own about HK$2.3b worth of shares (which is 53% 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.
So What Does This Data Suggest About Changsha Broad Homes Industrial Group Insiders?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Changsha Broad Homes Industrial Group. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Changsha Broad Homes Industrial Group. Our analysis shows 3 warning signs for Changsha Broad Homes Industrial Group (1 is significant!) and we strongly recommend you look at these before investing .
Of course Changsha Broad Homes Industrial Group 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.