Shanghai Chicmax Cosmetic Co., Ltd. (HKG:2145) shareholders (or potential shareholders) will be happy to see that the Independent Non-Executive Director, Yan Luo, recently bought a whopping HK$12m worth of stock, at a price of HK$40.51. That increased their holding by a full 1,283%, 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.

Shanghai Chicmax Cosmetic Insider Transactions Over The Last Year

Notably, that recent purchase by Yan Luo is the biggest insider purchase of Shanghai Chicmax Cosmetic shares that we've seen in the last year. That implies that an insider found the current price of HK$42.30 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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. The good news for Shanghai Chicmax Cosmetic share holders is that insiders were buying at near the current price.

In the last twelve months Shanghai Chicmax Cosmetic insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Shanghai Chicmax Cosmetic Boast High Insider Ownership?

Many investors like to check how much of a company is owned by 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 Shanghai Chicmax Cosmetic insiders own 40% of the company, worth about HK$6.8b. 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 Shanghai Chicmax Cosmetic Tell Us?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Shanghai Chicmax Cosmetic insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Shanghai Chicmax Cosmetic.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com