Nongfu Spring Insider Ups Holding During Year

From what we can see, insiders were net buyers in Nongfu Spring Co., Ltd.'s (HKG:9633 ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At Nongfu Spring

The Founder Shanshan Zhong made the biggest insider purchase in the last 12 months. That single transaction was for HK$19m worth of shares at a price of HK$38.68 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$45.52. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Shanshan Zhong bought a total of 3.09m shares over the year at an average price of HK$39.11. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Nongfu Spring

Nongfu Spring is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Nongfu Spring Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Nongfu Spring insiders own about HK$430b worth of shares (which is 84% of the company). 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 Nongfu Spring Insider Transactions Indicate?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Nongfu Spring. One for the watchlist, at least! Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Nongfu Spring.

Of course Nongfu Spring may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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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