Bullish Anchorstone Holdings Insiders Loaded Up On HK$7.11m Of Stock

Over the last year, a good number of insiders have significantly increased their holdings in Anchorstone Holdings Limited (HKG:1592). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Anchorstone Holdings

Anchorstone Holdings Insider Transactions Over The Last Year

The insider Hok Choi made the biggest insider purchase in the last 12 months. That single transaction was for HK$4.0m worth of shares at a price of HK$0.083 each. That means that even when the share price was higher than HK$0.066 (the recent price), an insider wanted to purchase shares. 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. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Happily, we note that in the last year insiders paid HK$7.1m for 102.89m shares. On the other hand they divested 42.11m shares, for HK$2.9m. In the last twelve months there was more buying than selling by Anchorstone Holdings insiders. The average buy price was around HK$0.069. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by companies and individuals) over the last year. 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. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Anchorstone Holdings Insiders Are Selling The Stock

We've seen more insider selling than insider buying at Anchorstone Holdings recently. In total, insiders sold HK$1.9m worth of shares in that time. Meanwhile Chairman & CEO Yue Yun Lui bought HK$381k worth. Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the shares are not cheap.

Does Anchorstone Holdings Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Anchorstone Holdings insiders own 39% of the company, worth about HK$55m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Anchorstone Holdings Insiders?

The insider sales have outweighed the insider buying, at Anchorstone Holdings, in the last three months. But we take heart from prior transactions. It's good to see insiders are shareholders. So the recent selling doesn't worry us too much. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Anchorstone Holdings has 5 warning signs (and 3 which are a bit unpleasant) we think you should know about.

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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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.