Trade Alert: The Co-Founder Of Hopefluent Group Holdings Limited (HKG:733), Wai Fu, Has Just Spent HK$93m Buying 78% More Shares

In This Article:

Those following along with Hopefluent Group Holdings Limited (HKG:733) will no doubt be intrigued by the recent purchase of shares by Wai Fu, Co-Founder of the company, who spent a stonking HK$93m on stock at an average price of HK$1.50. That increased their holding by a full 78%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.

View our latest analysis for Hopefluent Group Holdings

The Last 12 Months Of Insider Transactions At Hopefluent Group Holdings

In fact, the recent purchase by Wai Fu was the biggest purchase of Hopefluent Group Holdings 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$1.40). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Wai Fu was the only individual insider to buy during the last year.

You can see a visual depiction of insider transactions (by 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!

SEHK:733 Recent Insider Trading April 23rd 2020
SEHK:733 Recent Insider Trading April 23rd 2020

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

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. Hopefluent Group Holdings insiders own about HK$207m worth of shares. That equates to 22% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Hopefluent Group Holdings Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. 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 Hopefluent Group Holdings. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Hopefluent Group Holdings. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Hopefluent Group Holdings.