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Even if it's not a huge purchase, we think it was good to see that Foo Lam, the Co-Founder of High Fashion International Limited (HKG:608) recently shelled out HK$528k to buy stock, at HK$1.67 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.
View our latest analysis for High Fashion International
High Fashion International Insider Transactions Over The Last Year
Notably, that recent purchase by Co-Founder Foo Lam was not the only time they bought High Fashion International shares this year. Earlier in the year, they paid HK$1.72 per share in a HK$946k purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$1.67). 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. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Foo Lam was the only individual insider to buy shares in the last twelve months.
Foo Lam purchased 952000 shares over the year. The average price per share was HK$1.70. 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!
There 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).
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. I reckon it's a good sign if insiders own a significant number of shares in the company. High Fashion International insiders own about HK$265m worth of shares (which is 52% of the company). 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 Does This Data Suggest About High Fashion International Insiders?
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 High Fashion International. One for the watchlist, at least! To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.