Insiders Of Huasheng International Holding Reap Rewards After Their Investment Jumps Another HK$7.9m
Last week, Huasheng International Holding Limited (HKG:1323) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 11% last week, resulting in a HK$15m increase in the company's market worth, implying a 64% gain on their initial purchase. In other words, the original HK$12.4m purchase is now worth HK$20.3m.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Huasheng International Holding Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider Chi Ng for HK$12m worth of shares, at about HK$0.13 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$0.21. 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.
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!
Check out our latest analysis for Huasheng International Holding
Huasheng International Holding is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders At Huasheng International Holding Have Bought Stock Recently
There has been significantly more insider buying, than selling, at Huasheng International Holding, over the last three months. In total, insider Chi Ng bought HK$12m worth of shares in that time. But we did see insider Kwok Hung Lam sell shares worth HK$4.3m. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.
Does Huasheng International Holding 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. Huasheng International Holding insiders own 43% of the company, currently worth about HK$68m 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.
So What Do The Huasheng International Holding Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. 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. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Huasheng International Holding. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 3 warning signs (2 are potentially serious!) that you ought to be aware of before buying any shares in Huasheng International Holding.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.