China PengFei Group Insider Buyers See Boost After Market Cap Rose HK$80m
China PengFei Group Limited (HKG:3348) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 12% resulting in a HK$80m addition to the company’s market value. In other words, the original CN¥4.92m purchase is now worth CN¥5.99m.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
China PengFei Group Insider Transactions Over The Last Year
The Executive Chairman of the Board Jiaan Wang made the biggest insider purchase in the last 12 months. That single transaction was for HK$3.8m worth of shares at a price of HK$1.22 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$1.45. 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.
Jiaan Wang purchased 4.13m shares over the year. The average price per share was HK$1.19. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Check out our latest analysis for China PengFei Group
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Does China PengFei Group 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. A high insider ownership often makes company leadership more mindful of shareholder interests. China PengFei Group insiders own 47% of the company, currently worth about HK$339m based on the recent share price. 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 PengFei Group Tell Us?
The fact that there have been no China PengFei Group insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, China PengFei Group insiders feel good about the company's future. 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. At Simply Wall St, we've found that China PengFei Group has 3 warning signs (1 makes us a bit uncomfortable!) that deserve your attention before going any further with your analysis.
But note: China PengFei Group 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.