Hongcheng Environmental Technology Company Limited (HKG:2265) shareholders (or potential shareholders) will be happy to see that the Chairman, Zeming Liu, recently bought a whopping HK$4.1m worth of stock, at a price of HK$0.69. While that only increased their holding size by 1.0%, it is still a big swing by our standards.
See our latest analysis for Hongcheng Environmental Technology
Hongcheng Environmental Technology Insider Transactions Over The Last Year
In fact, the recent purchase by Zeming Liu was the biggest purchase of Hongcheng Environmental Technology 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$0.69 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.
While Hongcheng Environmental Technology insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Hongcheng Environmental Technology insiders own 75% of the company, worth about HK$519m. 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 Does This Data Suggest About Hongcheng Environmental Technology Insiders?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Hongcheng Environmental Technology. One for the watchlist, at least! 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. Every company has risks, and we've spotted 2 warning signs for Hongcheng Environmental Technology (of which 1 is potentially serious!) you should know about.
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, but not derivative transactions.
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