Yahoo Finance Should You Take Comfort From Insider Transactions At Hengan International Group Company Limited (HKG:1044)?
We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Hengan International Group Company Limited (HKG:1044), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, rules govern insider transactions, and certain disclosures are required.
We don’t think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
View our latest analysis for Hengan International Group
Hengan International Group Insider Transactions Over The Last Year
Chairman of the Board Man Bok Sze made the biggest insider purchase in the last 12 months. That single transaction was for HK$243m worth of shares at a price of HK$54.98 each. So it’s clear an insider wanted to buy, at around the current price. 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. In any event it’s generally a positive if insiders are buying shares at around the current price.
Happily, we note that in the last year insiders bought 8.56m shares for a total of HK$476m. Overall, Hengan International Group insiders were net buyers last year. Their average price was about HK$55.62. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price of HK$57.00. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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.
Insiders at Hengan International Group Have Bought Stock Recently
Over the last quarter, Hengan International Group insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought CN¥476m worth of shares. This is a positive in our book as it implies some confidence.
Insider Ownership of Hengan International Group
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Hengan International Group insiders own about HK$29b worth of shares (which is 42% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Hengan International Group Insider Transactions Indicate?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Hengan International Group. Looks promising! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Hengan International Group.
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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
