China Saftower International Holding Group's Market Cap Up HK$6.6m Following Year Of Insider Stock Buying

China Saftower International Holding Group Limited (HKG:8623) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 27%, resulting in a HK$6.6m rise in the company's market capitalisation, translating to a gain of 50% on their initial investment. As a result, the stock they originally bought for CN¥548.7k is now worth CN¥823.0k.

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.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

China Saftower International Holding Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Executive Director & Compliance Officer Xiaozhong Wang for HK$549k worth of shares, at about HK$0.11 per share. We do like to see buying, but this purchase was made at well below the current price of HK$0.17. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for China Saftower International Holding Group

China Saftower International Holding 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.

Does China Saftower International Holding Group Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that China Saftower International Holding Group insiders own 12% of the company, worth about HK$3.8m. But they may have an indirect interest through a corporate structure that we haven't picked up on. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About China Saftower International Holding Group Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think China Saftower International Holding Group insiders are doubting the company. 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. For example - China Saftower International Holding Group has 4 warning signs we think you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 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.