Insiders who bought Prime Intelligence Solutions Group Limited (HKG:8379) stock lover the last 12 months are probably not as affected by last week’s 16% loss. Reason being, despite the recent loss, insiders original purchase value of HK$15.9m is now worth HK$25.3m.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Prime Intelligence Solutions Group
The CEO & Chairman of the Board Yicheng Wang made the biggest insider purchase in the last 12 months. That single transaction was for HK$11m worth of shares at a price of HK$0.12 each. We do like to see buying, but this purchase was made at well below the current price of HK$0.19. 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.
Yicheng Wang bought a total of 136.23m shares over the year at an average price of HK$0.12. 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!
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).
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Prime Intelligence Solutions Group insiders own 50% of the company, currently worth about HK$75m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, Prime Intelligence Solutions Group insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Prime Intelligence Solutions Group. Case in point: We've spotted 4 warning signs for Prime Intelligence Solutions Group you should be aware of, and 3 of these are a bit concerning.
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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