Potential Hongcheng Environmental Technology Company Limited (HKG:2265) shareholders may wish to note that the Chairman, Zeming Liu, recently bought HK$3.9m worth of stock, paying HK$0.65 for each share. Although the purchase only increased their holding by 1.0%, it is still a solid purchase in our view.
See our latest analysis for Hongcheng Environmental Technology
Hongcheng Environmental Technology Insider Transactions Over The Last Year
Notably, that recent purchase by Chairman Zeming Liu was not the only time they bought Hongcheng Environmental Technology shares this year. They previously made an even bigger purchase of HK$4.1m worth of shares at a price of HK$0.69 per share. We do like to see buying, but this purchase was made at well below the current price of HK$0.80. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In the last twelve months Hongcheng Environmental Technology insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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 Hongcheng Environmental Technology Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Hongcheng Environmental Technology insiders own 59% of the company, worth about HK$473m. 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 Hongcheng Environmental Technology Insiders?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Hongcheng Environmental Technology insiders are well aligned, and quite possibly think the share price is too low. Nice! 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. Case in point: We've spotted 1 warning sign for Hongcheng Environmental Technology you should be aware of.
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 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.