Potential China Outfitters Holdings Limited (HKG:1146) shareholders may wish to note that the CFO & Executive Director, Xiaoyun Huang, recently bought HK$2.2m worth of stock, paying HK$0.024 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 28%.
Check out our latest analysis for China Outfitters Holdings
The Last 12 Months Of Insider Transactions At China Outfitters Holdings
In fact, the recent purchase by Xiaoyun Huang was the biggest purchase of China Outfitters 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$0.039. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Xiaoyun Huang purchased 143.16m shares over the year. The average price per share was HK$0.025. 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!
China Outfitters Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does China Outfitters Holdings Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. China Outfitters Holdings insiders own about HK$63m worth of shares (which is 47% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At China Outfitters Holdings Tell Us?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest China Outfitters Holdings insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! 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. Be aware that China Outfitters Holdings is showing 3 warning signs in our investment analysis, and 2 of those can't be ignored...
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.