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While insiders may sell their shareholdings for many reasons, such as personal needs for cash, they tend to buy more shares with one motive in mind – increase their exposure to the company. Insiders have an unparalleled view into their own firm, compared to a typical individual investor, which provide us with a good reason to take a closer look at their bullish sentiment.
China Singyes Solar Technologies Holdings Limited (SEHK:750)
China Singyes Solar Technologies Holdings Limited, an investment holding company, designs, fabricates, and installs conventional curtain walls and solar projects in Mainland China, Malaysia, Macau, Hong Kong, the United States, Africa, and Oceania. Established in 2003, and run by CEO Hongwei Liu, the company employs 2,500 people and with the company’s market capitalisation at HKD HK$2.43B, we can put it in the mid-cap group.
China Singyes Solar Technologies Holdings Limited (SEHK:750) is one of Hong Kong’s large-cap stocks that saw some insider buying over the past three months, with insiders investing in more than 3 million shares during this period. In total, individual insiders own less than one million shares in the business, or around 0.05% of total shares outstanding.
The entity that bought on the open market in the last three months was
Strong Eagle Holdings Ltd.. Although this is an institutional investor, rather than a company executive or board member, the insights gained from direct access to management as a large investor would make it more well-informed than the average retail investor. In this specific instance, I would classify this investor as a company insider.
With a relatively flat top-line forecasted for the upcoming year, but a robust earnings growth rate of 72.47%, insiders may have strong conviction in management’s cost initiatives moving forward. This underlying driver of growth could be one of the reasons why insiders have bought more shares over the past couple of months. More detail on China Singyes Solar Technologies Holdings here.
Far East Horizon Limited (SEHK:3360)
Far East Horizon Limited, together with its subsidiaries, provides various financial services in Mainland China, Hong Kong, and internationally. Formed in 2008, and currently headed by CEO Fanxing Kong, the company provides employment to 11,558 people and with the market cap of HKD HK$32.37B, it falls under the large-cap stocks category.
Far East Horizon Limited (SEHK:3360) is one of Hong Kong’s large-cap stocks that saw some insider buying over the past three months, with insiders investing in more than 3 million shares during this period. In total, individual insiders own over 22 million shares in the business, which makes up around 0.56% of total shares outstanding.