Insiders of Envision Greenwise Holdings Getting Good Value On Their HK$165.2m Investment

Envision Greenwise Holdings Limited (HKG:1783) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 23%, resulting in a HK$314m rise in the company's market capitalisation, translating to a gain of 346% on their initial investment. As a result, the stock they originally bought for HK$165.2m is now worth HK$736.4m.

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 Envision Greenwise Holdings

The Last 12 Months Of Insider Transactions At Envision Greenwise Holdings

The Executive Chairman Chun Sing Kwok made the biggest insider purchase in the last 12 months. That single transaction was for HK$101m worth of shares at a price of HK$0.28 each. We do like to see buying, but this purchase was made at well below the current price of HK$1.35. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Chun Sing Kwok purchased 545.51m shares over the year. The average price per share was HK$0.30. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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. 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).

Insider Ownership Of Envision Greenwise Holdings

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Envision Greenwise Holdings insiders own about HK$1.1b worth of shares (which is 63% of the company). 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 Envision Greenwise Holdings Insider Transactions Indicate?

The fact that there have been no Envision Greenwise Holdings insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Envision Greenwise Holdings insiders think the business has merit. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Our analysis shows 3 warning signs for Envision Greenwise Holdings (1 makes us a bit uncomfortable!) and we strongly recommend you look at these before investing.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.