Yajun Wu Is The Chairperson of the Board of Longfor Group Holdings Limited (HKG:960) And Just Spent CN¥153m On Shares

·3 min read

Longfor Group Holdings Limited (HKG:960) shareholders (or potential shareholders) will be happy to see that the Chairperson of the Board, Yajun Wu, recently bought a whopping HK$153m worth of stock, at a price of HK$36.50. While that only increased their holding size by 0.2%, it is still a big swing by our standards.

See our latest analysis for Longfor Group Holdings

Longfor Group Holdings Insider Transactions Over The Last Year

In fact, the recent purchase by Yajun Wu was the biggest purchase of Longfor Group Holdings shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of HK$38.10. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.

Happily, we note that in the last year insiders paid HK$673m for 19.50m shares. But insiders sold 1527785 shares worth HK$55m. In the last twelve months there was more buying than selling by Longfor Group Holdings insiders. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

SEHK:960 Recent Insider Trading April 21st 2020
SEHK:960 Recent Insider Trading April 21st 2020

Longfor Group Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Longfor Group Holdings

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Longfor Group Holdings insiders own 51% of the company, currently worth about HK$115b based on the recent share price. 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 Does This Data Suggest About Longfor Group Holdings Insiders?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Longfor Group Holdings insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! While we like knowing 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. Every company has risks, and we've spotted 2 warning signs for Longfor Group Holdings you should know about.

Of course Longfor Group Holdings 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, but not derivative transactions.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.