Founder & Executive Chairman of the Board of Mao Geping Cosmetics Geping Mao Buys More Stock
Those following along with Mao Geping Cosmetics Co., Ltd. (HKG:1318) will no doubt be intrigued by the recent purchase of shares by Geping Mao, Founder & Executive Chairman of the Board of the company, who spent a stonking HK$23m on stock at an average price of HK$58.00. While that only increased their holding size by 0.2%, it is still a big swing by our standards.
Mao Geping Cosmetics Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Co-Founder, Niping Mao, sold HK$149m worth of shares at a price of HK$87.88 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (HK$59.85). So it may not shed much light on insider confidence at current levels.
Happily, we note that in the last year insiders paid HK$45m for 762.70k shares. On the other hand they divested 7.20m shares, for HK$633m. In total, Mao Geping Cosmetics insiders sold more than they bought over the last year. 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!
View our latest analysis for Mao Geping Cosmetics
I will like Mao Geping Cosmetics better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Does Mao Geping Cosmetics Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Mao Geping Cosmetics insiders own 72% of the company, currently worth about HK$21b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Mao Geping Cosmetics Insider Transactions Indicate?
It is good to see recent purchasing. On the other hand the transaction history, over the last year, isn't so positive. The high levels of insider ownership, and the recent buying by some insiders suggests they are well aligned and optimistic. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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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.