GoFintech Innovation Limited (HKG:290) shareholders (or potential shareholders) will be happy to see that the Executive Chairman, Zhiwei Liu, recently bought a whopping HK$100m worth of stock, at a price of HK$0.10. That increased their holding by a full 300%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.

GoFintech Innovation Insider Transactions Over The Last Year

Notably, that recent purchase by Zhiwei Liu is the biggest insider purchase of GoFintech Innovation shares that we've seen in the last year. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$0.16. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

GoFintech Innovation insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around HK$0.13. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

GoFintech Innovation is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 11% of GoFintech Innovation shares, worth about HK$112m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About GoFintech Innovation Insiders?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about GoFintech Innovation. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing GoFintech Innovation. Our analysis shows 3 warning signs for GoFintech Innovation (2 are potentially serious!) and we strongly recommend you look at them before investing.

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 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.