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One China Reinsurance (Group) Corporation (HKG:1508) Insider Upped Their Stake by 3.4% in the Previous Year

Simply Wall St ·  Sep 3, 2022 21:15

Viewing insider transactions for China Reinsurance (Group) Corporation's (HKG:1508 ) over the last year, we see that insiders were net buyers. This means that a larger number of shares were purchased by insiders in relation to shares sold.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for China Reinsurance (Group)

China Reinsurance (Group) Insider Transactions Over The Last Year

The insider Chiu Fai Choi made the biggest insider purchase in the last 12 months. That single transaction was for HK$10m worth of shares at a price of HK$0.91 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$0.59). 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 always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Chiu Fai Choi. We note that Chiu Fai Choi was both the biggest buyer and the biggest seller.

Chiu Fai Choi bought 14.00m shares over the last 12 months at an average price of HK$0.91. 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!

insider-trading-volumeSEHK:1508 Insider Trading Volume September 4th 2022

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of China Reinsurance (Group)

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. China Reinsurance (Group) insiders own about HK$196m worth of shares. That equates to 0.8% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At China Reinsurance (Group) Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like China Reinsurance (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 China Reinsurance (Group). In terms of investment risks, we've identified 2 warning signs with China Reinsurance (Group) and understanding these should be part of your investment process.

But note: China Reinsurance (Group) may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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