Feiyang International Holdings Group Insider Buyers See Boost After Market Cap Rose HK$65m

Last week, Feiyang International Holdings Group Limited (HKG:1901) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 20% last week, resulting in a HK$65m increase in the company's market worth, implying a 69% gain on their initial purchase. As a result, their original purchase of CN¥14.0m worth of stock is now worth CN¥23.7m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Feiyang International Holdings Group

Over the last year, we can see that the biggest insider purchase was by insider Li Gao for HK$10m worth of shares, at about HK$0.20 per share. We do like to see buying, but this purchase was made at well below the current price of HK$0.39. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Li Gao bought a total of 60.79m shares over the year at an average price of HK$0.23. You can see a visual depiction of insider transactions (by companies and 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!

Check out our latest analysis for Feiyang International Holdings Group

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Feiyang International Holdings Group insiders own 42% of the company, worth about HK$164m. 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 Feiyang International Holdings Group Tell Us?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Feiyang International Holdings Group. That's what I like to see! While it's good to be aware of 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. Case in point: We've spotted 3 warning signs for Feiyang International Holdings Group you should be aware of.

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 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.