China Renaissance Holdings Limited (HKG:1911) shareholders (or potential shareholders) will be happy to see that the Chairman & CEO, Fan Bao, recently bought a whopping US$11m worth of stock, at a price of US$15.06. That increased their holding by a full 85%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.
China Renaissance Holdings Insider Transactions Over The Last Year
In fact, the recent purchase by Fan Bao was the biggest purchase of China Renaissance Holdings shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of HK$15.14 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for China Renaissance Holdings share holders is that insiders were buying at near the current price.
China Renaissance Holdings insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
China Renaissance Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Many investors like to check how much of a company is owned by 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. Our data suggests China Renaissance Holdings insiders own 0.2% of the company, worth about HK$14m. However, it's possible that insiders might have an indirect interest through a more complex structure. We consider this fairly low insider ownership.
So What Do The China Renaissance Holdings Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. Given that insiders also own a fair bit of China Renaissance Holdings we think they are probably pretty confident of a bright future. Of course, the future is what matters most. So if you are interested in China Renaissance Holdings, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 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. Thank you for reading.