Co-Founder & Executive Chairman Foo Wah Lam Just Bought A Handful Of Shares In High Fashion International Limited (HKG:608)
Investors who take an interest in High Fashion International Limited (HKG:608) should definitely note that the Co-Founder & Executive Chairman, Foo Wah Lam, recently paid HK$1.50 per share to buy HK$1.2m worth of the stock. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
Check out our latest analysis for High Fashion International
The Last 12 Months Of Insider Transactions At High Fashion International
In fact, the recent purchase by Foo Wah Lam was the biggest purchase of High Fashion International 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$1.50. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for High Fashion International share holders is that an insider was buying at near the current price. Foo Wah Lam was the only individual insider to buy during the last year.
Foo Wah Lam bought a total of 1.28m shares over the year at an average price of HK$1.56. 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!
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 of High Fashion International
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. High Fashion International insiders own 52% of the company, currently worth about HK$239m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About High Fashion International Insiders?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest High Fashion International insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example, High Fashion International has 6 warning signs (and 2 which are concerning) we think you should know about.
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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