Even if it's not a huge purchase, we think it was good to see that Ching Lau Hui, the Executive Chairman of the Board of Qinqin Foodstuffs Group (Cayman) Company Limited (HKG:1583) recently shelled out HK$760k to buy stock, at HK$0.76 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
Qinqin Foodstuffs Group (Cayman) Insider Transactions Over The Last Year
Notably, that recent purchase by Executive Chairman of the Board Ching Lau Hui was not the only time they bought Qinqin Foodstuffs Group (Cayman) shares this year. Earlier in the year, they paid HK$1.10 per share in a HK$6.6m purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$0.80). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Ching Lau Hui was the only individual insider to buy during the last year.
Ching Lau Hui purchased 7.86m shares over the year. The average price per share was HK$1.01. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Qinqin Foodstuffs Group (Cayman) is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Qinqin Foodstuffs Group (Cayman) insiders own 65% of the company, currently worth about HK$392m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Qinqin Foodstuffs Group (Cayman) Tell Us?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Qinqin Foodstuffs Group (Cayman) 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. Our analysis shows 2 warning signs for Qinqin Foodstuffs Group (Cayman) (1 is a bit concerning!) and we strongly recommend you look at these before investing.
But note: Qinqin Foodstuffs Group (Cayman) may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.