Those following along with China Lesso Group Holdings Limited (HKG:2128) will no doubt be intrigued by the recent purchase of shares by Luen Hei Wong, Founder & Executive Chairman of the company, who spent a stonking HK$20m on stock at an average price of HK$4.14. While that only increased their holding size by 0.2%, it is still a big swing by our standards.
View our latest analysis for China Lesso Group Holdings
China Lesso Group Holdings Insider Transactions Over The Last Year
Notably, that recent purchase by Founder & Executive Chairman Luen Hei Wong was not the only time they bought China Lesso Group Holdings shares this year. Earlier in the year, they paid HK$5.30 per share in a HK$20m purchase. That means that even when the share price was higher than HK$4.27 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
While China Lesso Group Holdings insiders bought shares during the last year, they didn't sell. Their average price was about HK$4.49. This is nice to see since it implies that insiders might see value around current prices. 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!
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.
Does China Lesso Group Holdings Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. China Lesso Group Holdings insiders own about HK$9.1b worth of shares (which is 69% 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 China Lesso Group Holdings Insiders?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest China Lesso Group Holdings insiders are well aligned, and quite possibly think the share price is too low. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing China Lesso Group Holdings. You'd be interested to know, that we found 2 warning signs for China Lesso Group Holdings and we suggest you have a look.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 of direct interests only, but not derivative transactions or indirect interests.
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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.