Impro Precision Industries Insider Buyers See Boost After Market Cap Rose HK$453m

Impro Precision Industries Limited (HKG:1286) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 10% resulting in a HK$453m addition to the company’s market value. As a result, the stock they originally bought for HK$170.5m is now worth HK$196.5m.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Impro Precision Industries

Impro Precision Industries Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Executive Chairman & CEO Ruibo Lu bought HK$83m worth of shares at a price of HK$2.08 per share. Even though the purchase was made at a significantly lower price than the recent price (HK$2.62), 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.

Ruibo Lu bought 75.00m shares over the last 12 months at an average price of HK$2.27. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Impro Precision Industries insiders own 72% of the company, worth about HK$3.6b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Impro Precision Industries Insider Transactions Indicate?

The fact that there have been no Impro Precision Industries insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Impro Precision Industries 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 Impro Precision Industries. At Simply Wall St, we found 1 warning sign for Impro Precision Industries that deserve your attention before buying any shares.

Of course Impro Precision Industries 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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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.