Longfor Group Holdings Limited (HKG:960) shareholders (or potential shareholders) will be happy to see that the Chairperson of the Board, Yajun Wu, recently bought a whopping HK$141m worth of stock, at a price of HK$36.98. 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 0.1%.
The Last 12 Months Of Insider Transactions At Longfor Group Holdings
In fact, the recent purchase by Chairperson of the Board Yajun Wu was not their only acquisition of Longfor Group Holdings shares this year. They previously made an even bigger purchase of HK$200m worth of shares at a price of HK$22.70 per share. Even though the purchase was made at a significantly lower price than the recent price (HK$36.75), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Happily, we note that in the last year insiders paid HK$572m for 20.09m shares. But insiders sold 210731 shares worth HK$6.0m. Overall, Longfor Group Holdings insiders were net buyers last year. The average buy price was around HK$28.48. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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).
Insider Ownership of Longfor Group Holdings
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. It's great to see that Longfor Group Holdings insiders own 50% of the company, worth about HK$111b. 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 Do The Longfor Group Holdings Insider Transactions Indicate?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Longfor Group Holdings insiders are well aligned, and quite possibly think the share price is too low. Looks promising! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Longfor Group Holdings.
But note: Longfor Group Holdings 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.
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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