FEG Holdings Up 18%, Insider Buyers Are Up 34%

FEG Holdings Corporation Limited (HKG:1413) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 18% resulting in a HK$28m addition to the company’s market value. Put another way, the original HK$13.9m acquisition is now worth HK$18.7m.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for FEG Holdings

FEG Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Executive Chairman Tung Tsun Cheung for HK$8.9m worth of shares, at about HK$0.12 per share. We do like to see buying, but this purchase was made at well below the current price of HK$0.15. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Tung Tsun Cheung bought a total of 121.16m shares over the year at an average price of HK$0.11. 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 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).

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 24% of FEG Holdings shares, worth about HK$37m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About FEG Holdings Insiders?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Insiders likely see value in FEG Holdings shares, given these transactions (along with notable insider ownership of the company). While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For instance, we've identified 4 warning signs for FEG Holdings (1 doesn't sit too well with us) you should be aware of.

Of course FEG Holdings 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.