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Insider Buying: The China Flavors and Fragrances Company Limited (HKG:3318) Chairman & CEO Just Bought CN¥902k Worth Of Shares

Simply Wall St

Potential China Flavors and Fragrances Company Limited (HKG:3318) shareholders may wish to note that the Chairman & CEO, Ming Fan Wang, recently bought CN¥902k worth of stock, paying CN¥1.88 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 0.4%.

View our latest analysis for China Flavors and Fragrances

The Last 12 Months Of Insider Transactions At China Flavors and Fragrances

In fact, the recent purchase by Chairman & CEO Ming Fan Wang was not their only acquisition of China Flavors and Fragrances shares this year. Earlier in the year, they paid HK$1.80 per share in a HK$4.5m purchase. That means that an insider was happy to buy shares at around the current price of HK$1.80. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider bought shares at close to current prices. The only individual insider to buy over the last year was Ming Fan Wang.

Ming Fan Wang bought a total of 7421184 shares over the year at an average price of HK$1.96. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

SEHK:3318 Recent Insider Trading, October 17th 2019

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of China Flavors and Fragrances

For a common shareholder, it is worth checking how many shares are held by company 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. Insiders own 19% of China Flavors and Fragrances shares, worth about HK$304m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The China Flavors and Fragrances Insider Transactions Indicate?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest China Flavors and Fragrances insiders are well aligned, and quite possibly think the share price is too low. Nice! Of course, the future is what matters most. So if you are interested in China Flavors and Fragrances, you should check out this free report on analyst forecasts for the company.

Of course China Flavors and Fragrances 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.

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Thank you for reading.