As Huisen Household International Group Limited (HKG:2127) hits HK$905m market cap, insiders may be dismayed about not purchasing higher quantities

Huisen Household International Group Limited (HKG:2127) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 32%, resulting in a HK$218m rise in the company’s market capitalisation. As a result, the stock they originally bought for CN¥440k is now worth CN¥590k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

However if you’d rather see where the opportunities and risks are within 2127’s industry, you can check out our analysis on the HK Consumer Durables industry.

Huisen Household International Group Insider Transactions Over The Last Year

Notably, that recent purchase by Ming Zeng is the biggest insider purchase of Huisen Household International Group shares that we’ve seen in the last year. We do like to see buying, but this purchase was made at well below the current price of HK$0.29. Because the shares were purchased at a lower price, this particular buy doesn’t tell us much about how insiders feel about the current share price.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Huisen Household International Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Huisen Household International Group Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Huisen Household International Group insiders own 72% of the company, currently worth about HK$648m 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 Do The Huisen Household International Group Insider Transactions Indicate?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Huisen Household International Group. Looks promising! In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Huisen Household International Group. In terms of investment risks, we’ve identified 1 warning sign with Huisen Household International Group and understanding this should be part of your investment process.

If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.