Tiangong International Company Limited (HKG:826) shareholders (or potential shareholders) will be happy to see that the Chief Investment Officer, Zefeng Zhu, recently bought a whopping HK$12m worth of stock, at a price of HK$2.96. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 0.7%.
The Last 12 Months Of Insider Transactions At Tiangong International
Notably, that recent purchase by Chief Investment Officer Zefeng Zhu was not the only time they bought Tiangong International shares this year. They previously made an even bigger purchase of HK$25m worth of shares at a price of HK$2.48 per share. We do like to see buying, but this purchase was made at well below the current price of HK$3.15. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Zefeng Zhu bought a total of 16.50m shares over the year at an average price of HK$2.54. You can see a visual depiction of insider transactions (by 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 always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Tiangong International Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Tiangong International insiders own about HK$2.6b worth of shares (which is 32% 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.
So What Does This Data Suggest About Tiangong International Insiders?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Tiangong International. Nice! Of course, the future is what matters most. So if you are interested in Tiangong International, you should check out this free report on analyst forecasts for the company.
Of course Tiangong International may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.