Insiders were net buyers of Super Hi International Holding Ltd.'s (HKG:9658 ) stock during the past year. That is, insiders bought more stock than they sold.
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.
Check out our latest analysis for Super Hi International Holding
The CEO & Executive Director Lijuan Yang made the biggest insider purchase in the last 12 months. That single transaction was for HK$3.0m worth of shares at a price of HK$13.99 each. Even though the purchase was made at a significantly lower price than the recent price (HK$22.90), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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).
For a common shareholder, it is worth checking how many shares are held by company 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. Super Hi International Holding insiders own about HK$725m worth of shares. That equates to 4.9% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Super Hi International Holding. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Super Hi International Holding. While conducting our analysis, we found that Super Hi International Holding has 1 warning sign and it would be unwise to ignore this.
Of course Super Hi International Holding may not be the best stock to buy. So you may wish to see this free collection of high quality 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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