Those following along with China Hongbao Holdings Limited (HKG:8316) will no doubt be intrigued by the recent purchase of shares by Jun Cheng, Executive Chairman & Compliance Officer of the company, who spent a stonking HK$78m on stock at an average price of HK$0.65. That purchase boosted their holding by 13,483%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.
See our latest analysis for China Hongbao Holdings
The Last 12 Months Of Insider Transactions At China Hongbao Holdings
In fact, the recent purchase by Jun Cheng was the biggest purchase of China Hongbao Holdings shares made by an insider individual in the last twelve months, according to our records. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$0.77. 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.
Yuan Xing ditched 180.90m shares over the year. The average price per share was HK$0.65. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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Insider Ownership
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 Hongbao Holdings insiders own 69% of the company, currently worth about HK$462m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About China Hongbao Holdings Insiders?
We can't make any useful conclusions about recent trading, since insider buying and selling has been balanced. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of China Hongbao Holdings insider transactions don't fill us with confidence. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To that end, you should learn about the 5 warning signs we've spotted with China Hongbao Holdings (including 1 which shouldn't be ignored).
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.