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Tiewei Zhang Is The Executive Chairman of China Success Finance Group Holdings Limited (HKG:3623) And They Just Spent CN¥186k On Shares

Even if it's not a huge purchase, we think it was good to see that Tiewei Zhang, the Executive Chairman of China Success Finance Group Holdings Limited (HKG:3623) recently shelled out HK$186k to buy stock, at HK$0.78 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.

Check out our latest analysis for China Success Finance Group Holdings

The Last 12 Months Of Insider Transactions At China Success Finance Group Holdings

Notably, that recent purchase by Executive Chairman Tiewei Zhang was not the only time they bought China Success Finance Group Holdings shares this year. They previously made an even bigger purchase of HK$676k worth of shares at a price of HK$0.69 per share. That means that an insider was happy to buy shares at around the current price of HK$0.81. 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. In this case we're pleased to report that the insider bought shares at close to current prices. Tiewei Zhang was the only individual insider to buy over the year.

Tiewei Zhang bought 1.70m shares over the last 12 months at an average price of HK$0.70. 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!

SEHK:3623 Recent Insider Trading, January 17th 2020
SEHK:3623 Recent Insider Trading, January 17th 2020

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

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. China Success Finance Group Holdings insiders own 57% of the company, currently worth about HK$243m 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 China Success Finance Group Holdings Insiders?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about China Success Finance Group Holdings. Nice! Along with insider transactions, I recommend checking if China Success Finance Group Holdings is growing revenue. This free chart of historic revenue and earnings should make that easy.

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.