Fukai Zhang Bought 136% More Shares In PATEO CONNECT Technology (Shanghai)

Investors who take an interest in PATEO CONNECT Technology (Shanghai) Corporation (HKG:2889) should definitely note that the CFO, Secretary to the Board & Executive Director, Fukai Zhang, recently paid HK$83.60 per share to buy HK$3.4m worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 136%, potentially signalling some real optimism.

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The Last 12 Months Of Insider Transactions At PATEO CONNECT Technology (Shanghai)

Over the last year, we can see that the biggest insider purchase was by Founder Zhenkai Ying for HK$32m worth of shares, at about HK$171 per share. That means that an insider was happy to buy shares at above the current price of HK$92.55. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months PATEO CONNECT Technology (Shanghai) insiders were buying shares, but not selling. Their average price was about HK$153. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for PATEO CONNECT Technology (Shanghai)

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Does PATEO CONNECT Technology (Shanghai) Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that PATEO CONNECT Technology (Shanghai) insiders own 22% of the company, worth about HK$3.1b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At PATEO CONNECT Technology (Shanghai) Tell Us?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest PATEO CONNECT Technology (Shanghai) insiders are well aligned, and quite possibly think the share price is too low. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing PATEO CONNECT Technology (Shanghai). Case in point: We've spotted 1 warning sign for PATEO CONNECT Technology (Shanghai) you should be aware of.

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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 of direct interests only, but not derivative transactions or indirect interests.

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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.