Whilst it may not be a huge deal, we thought it was good to see that the Sing Lee Software (Group) Limited (HKG:8076) Co-Founder, Yung Hung, recently bought HK$407k worth of stock, for HK$0.17 per share. However, we do note that it only increased their holding by 3.8%, and it wasn’t a huge purchase by absolute value, either.
The Last 12 Months Of Insider Transactions At Sing Lee Software (Group)
In fact, the recent purchase by Yung Hung was the biggest purchase of Sing Lee Software (Group) shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of HK$0.17 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. Happily, the Sing Lee Software (Group) insiders decided to buy shares at close to current prices.
While Sing Lee Software (Group) insiders bought shares last year, they didn’t sell. Their average price was about 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. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Sing Lee Software (Group) is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Sing Lee Software (Group)
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it’s a good sign if insiders own a significant number of shares in the company. Our data indicates that Sing Lee Software (Group) insiders own about HK$15m worth of shares (which is 6.5% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Sing Lee Software (Group) Insiders?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Sing Lee Software (Group) we think they are probably pretty confident of a bright future. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
Of course Sing Lee Software (Group) 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, but not derivative transactions.
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