China Saftower International Holding Group's Market Cap Up HK$4.5m Following Year Of Insider Stock Buying

China Saftower International Holding Group Limited (HKG:8623) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 23% resulting in a HK$4.5m addition to the company’s market value. As a result, their original purchase of CN¥548.7k worth of stock is now worth CN¥773.1k.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At China Saftower International Holding Group

In the last twelve months, the biggest single purchase by an insider was when Executive Director & Compliance Officer Xiaozhong Wang bought HK$549k worth of shares at a price of HK$0.11 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$0.15. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

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

Check out our latest analysis for China Saftower International Holding Group

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of China Saftower International Holding Group

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. Our data indicates that China Saftower International Holding Group insiders own about HK$3.5m worth of shares (which is 15% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At China Saftower International Holding Group Tell Us?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that China Saftower International Holding Group insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing China Saftower International Holding Group. You'd be interested to know, that we found 3 warning signs for China Saftower International Holding Group and we suggest you have a look.

Of course China Saftower International Holding 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.

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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.