Trade Alert: The Executive Director Of Hengxin Technology Ltd. (HKG:1085), Guoqiang Xu, Has Just Spent CN¥1.6m Buying A Few More Shares

View photosInvestors who take an interest in Hengxin Technology Ltd. (HKG:1085) should definitely note that the Executive Director, Guoqiang Xu, recently paid HK$1.99 per share to buy HK$1.6m worth of the stock. However, it only increased shareholding by a small percentage, and it wasn’t a huge purchase by absolute value, either. Check out our latest analysis for Hengxin Technology The Last 12 Months Of Insider Transactions At Hengxin TechnologyNotably, that recent purchase by Guoqiang Xu is the biggest insider purchase of Hengxin Technology shares that we’ve seen in the last year. That means that an insider was happy to buy shares at around the current price of HK$2.05. 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 do always like to see insider buying, but it is worth noting if those purchases were made at well below today’s share price, as the discount to value may have narrowed with the rising price. Happily, the Hengxin Technology insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was Guoqiang Xu.Guoqiang Xu bought a total of 1.08m shares over the year at an average price of HK$2.00. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!SEHK:1085 Recent Insider Trading June 1st 2020There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).Does Hengxin Technology Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Hengxin Technology insiders own about HK$257m worth of shares. That equates to 32% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.What Might The Insider Transactions At Hengxin Technology Tell Us?The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Hengxin Technology. That’s what I like to see! I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow for free.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.Love or hate this article? Concerned about the content? Get in touch with us directly. Alternatively, email 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. 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. Thank you for reading.,
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