Those following along with GoFintech Innovation Limited (HKG:290) will no doubt be intrigued by the recent purchase of shares by insider Zhiwei Liu, who spent a stonking HK$303m on stock at an average price of HK$0.89. Not only is that a big swing, but it increased their holding size by 27%, which is definitely great to see.

The Last 12 Months Of Insider Transactions At GoFintech Innovation

In fact, the recent purchase by Zhiwei Liu was the biggest purchase of GoFintech Innovation shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$0.77). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Zhiwei Liu was the only individual insider to buy during the last year. We note that Zhiwei Liu was also the biggest seller.

Zhiwei Liu bought a total of 1.36b shares over the year at an average price of HK$0.30. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

GoFintech Innovation 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 GoFintech Innovation Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that GoFintech Innovation insiders own 35% of the company, worth about HK$1.9b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About GoFintech Innovation Insiders?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about GoFintech Innovation. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing GoFintech Innovation. At Simply Wall St, we've found that GoFintech Innovation has 2 warning signs (1 shouldn't be ignored!) that deserve your attention before going any further with your analysis.

Of course GoFintech Innovation 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.