Hengan International Group Company Limited (HKG:1044) shareholders (or potential shareholders) will be happy to see that the Executive Deputy Chairman & CEO, Lin-Chit Hui, recently bought a whopping HK$483m worth of stock, at a price of HK$53.42. While that only increased their holding size by 3.7%, it is still a big swing by our standards.
The Last 12 Months Of Insider Transactions At Hengan International Group
Notably, that recent purchase by Lin-Chit Hui is the biggest insider purchase of Hengan International Group shares that we've seen in the last year. That implies that an insider found the current price of HK$59.40 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Hengan International Group insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was Lin-Chit Hui.
Lin-Chit Hui bought 9.53m shares over the last 12 months at an average price of HK$53.47. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Hengan International Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Hengan International Group Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Hengan International Group insiders own 42% of the company, currently worth about HK$27b 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 Does This Data Suggest About Hengan International Group Insiders?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Hengan International Group insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Hengan International Group.
But note: Hengan International 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, but not derivative transactions.
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