Whilst it may not be a huge deal, we thought it was good to see that the Central China Securities Co., Ltd. (HKG:1375) President & Vice Chairman, Junsheng Chang, recently bought HK$200k worth of stock, for HK$1.15 per share. Even though that isn't a massive buy, it did increase their holding by 229%, which is a arguably a good sign.
The Last 12 Months Of Insider Transactions At Central China Securities
In fact, the recent purchase by Junsheng Chang was the biggest purchase of Central China Securities shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than HK$1.14 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Junsheng Chang.
Junsheng Chang bought 250.00k shares over the last 12 months at an average price of HK$1.14. 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!
Central China Securities is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Our information indicates that Central China Securities insiders own about HK$5.0m worth of shares. However, it's possible that insiders might have an indirect interest through a more complex structure. It's always possible we are missing something but from our data, it looks like insider ownership is minimal.
What Might The Insider Transactions At Central China Securities Tell Us?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Central China Securities insiders are expecting a bright future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Central China Securities is showing 5 warning signs in our investment analysis, and 2 of those are potentially serious...
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.
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.
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