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Trade Alert: The Deputy MD & Executive Director Of Shougang Fushan Resources Group Limited (HKG:639), Zhaoqiang Chen, Has Just Spent HK$1.3m Buying 82% More Shares

Simply Wall St ·  {{timeTz}}

Investors who take an interest in Shougang Fushan Resources Group Limited (HKG:639) should definitely note that the Deputy MD & Executive Director, Zhaoqiang Chen, recently paid HK$2.51 per share to buy HK$1.3m worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 82%, potentially signalling some real optimism.

See our latest analysis for Shougang Fushan Resources Group

The Last 12 Months Of Insider Transactions At Shougang Fushan Resources Group

In fact, the recent purchase by Zhaoqiang Chen was the biggest purchase of Shougang Fushan Resources Group shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of HK$2.57 per share to be enticing. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Shougang Fushan Resources Group share holders is that insiders were buying at near the current price.

While Shougang Fushan Resources Group insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volumeSEHK:639 Insider Trading Volume September 6th 2022

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.

Insider Ownership Of Shougang Fushan Resources Group

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.7% of Shougang Fushan Resources Group shares, worth about HK$87m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Shougang Fushan Resources Group Insider Transactions Indicate?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Insiders likely see value in Shougang Fushan Resources Group shares, given these transactions (along with notable insider ownership of the company). So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. When we did our research, we found 2 warning signs for Shougang Fushan Resources Group (1 is significant!) that we believe deserve your full attention.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.

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