Even if it's not a huge purchase, we think it was good to see that Sum Ping Hui, the Co-Founder of Hop Fung Group Holdings Limited (HKG:2320) recently shelled out HK$414k to buy stock, at HK$0.26 per share. However, it only increased their shares held by 1.1%, and it wasn't a huge purchase by absolute value, either.

Check out our latest analysis for Hop Fung Group Holdings

The Last 12 Months Of Insider Transactions At Hop Fung Group Holdings

In fact, the recent purchase by Sum Ping Hui was the biggest purchase of Hop Fung 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 above the current price of HK$0.25. 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. To us, it's very important to consider the price insiders pay for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Sum Ping Hui was the only individual insider to buy during the last year.

Sum Ping Hui purchased 2.27m shares over the year. The average price per share was HK$0.30. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Hop Fung Group Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Hop Fung Group Holdings insiders own 58% of the company, worth about HK$119m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Hop Fung Group Holdings Tell Us?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Hop Fung Group Holdings. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Hop Fung Group Holdings. For instance, we've identified 3 warning signs for Hop Fung Group Holdings (1 is potentially serious) you should be aware of.

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.

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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. 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.