Whilst it may not be a huge deal, we thought it was good to see that the Cabbeen Fashion Limited (HKG:2030) VP, GM of Cabbeen Urban Business Division & Executive Director, Rongqin Ke, recently bought HK$490k worth of stock, for HK$1.36 per share. However, it only increased their shares held by 3.6%, and it wasn't a huge purchase by absolute value, either.

The Last 12 Months Of Insider Transactions At Cabbeen Fashion

In the last twelve months, the biggest single purchase by an insider was when Founder Ziming Yang bought HK$18m worth of shares at a price of HK$0.81 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of HK$1.41. 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.

While Cabbeen Fashion insiders bought shares during the last year, they didn't sell. The average buy price was around HK$0.96. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. 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!

View our latest analysis for Cabbeen Fashion

Cabbeen Fashion 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 Cabbeen Fashion 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. We usually like to see fairly high levels of insider ownership. Cabbeen Fashion insiders own 65% of the company, currently worth about HK$608m 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.

What Might The Insider Transactions At Cabbeen Fashion Tell Us?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Cabbeen Fashion insiders are well aligned, and quite possibly think the share price is too low. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 1 warning sign for Cabbeen Fashion and we suggest you have a look.

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.

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