Ching Lau Hui Bought 19% More Shares In Hengan International Group

Those following along with Hengan International Group Company Limited (HKG:1044) will no doubt be intrigued by the recent purchase of shares by Ching Lau Hui, CEO & Executive Director of the company, who spent a stonking HK$6.5m on stock at an average price of HK$21.74. Not only is that a big swing, but it increased their holding size by 19%, which is definitely great to see.

The Last 12 Months Of Insider Transactions At Hengan International Group

In fact, the recent purchase by Ching Lau Hui was the biggest purchase of Hengan International Group 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$22.35 per share to be enticing. 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. The good news for Hengan International Group share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was Ching Lau Hui.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Hengan International Group

Hengan International Group is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Hengan International Group insiders own 21% of the company, currently worth about HK$5.4b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Hengan International Group Tell Us?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. 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. Looks promising! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that Hengan International Group has 1 warning sign and it would be unwise to ignore this.

Of course Hengan International Group 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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.