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Whilst it may not be a huge deal, we thought it was good to see that the China Health Group Inc. (HKG:8225) Chairman, Xia Guo, recently bought HK$116k worth of stock, for HK$0.13 per share. However, we do note that it only increased their holding by 0.2%, and it wasn't a huge purchase by absolute value, either.
See our latest analysis for China Health Group
China Health Group Insider Transactions Over The Last Year
Notably, that recent purchase by Xia Guo is the biggest insider purchase of China Health Group shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of HK$0.10. 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. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Xia Guo was the only individual insider to buy shares in the last twelve months.
Xia Guo purchased 3.04m shares over the year. The average price per share was HK$0.13. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
China Health Group 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
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. China Health Group insiders own 47% of the company, currently worth about HK$53m based on the recent share price. 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 Do The China Health Group Insider Transactions Indicate?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest China Health Group insiders are well aligned, and quite possibly think the share price is too low. Nice! I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.