Insiders of Golden Power Group Holdings Getting Good Value On Their HK$4.87m Investment

Last week, Golden Power Group Holdings Limited (HKG:3919) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 14% last week, resulting in a HK$4.2m increase in the company's market worth, implying a 21% gain on their initial purchase. As a result, their original purchase of HK$4.87m worth of stock is now worth HK$5.89m.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Golden Power Group Holdings Insider Transactions Over The Last Year

The insider Haobo Yang made the biggest insider purchase in the last 12 months. That single transaction was for HK$4.9m worth of shares at a price of HK$0.90 each. Even though the purchase was made at a significantly lower price than the recent price (HK$1.09), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

While Golden Power Group Holdings insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Golden Power Group Holdings

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).

Golden Power Group Holdings Insiders Bought Stock Recently

Over the last quarter, Golden Power Group Holdings insiders have spent a meaningful amount on shares. In total, insiders bought HK$4.9m worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.

Insider Ownership

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. It's great to see that Golden Power Group Holdings insiders own 64% of the company, worth about HK$23m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Golden Power Group Holdings Insider Transactions Indicate?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Golden Power Group Holdings insiders are well aligned, and quite possibly think the share price is too low. Looks promising! 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 5 warning signs for Golden Power Group Holdings (3 are significant!) and we strongly recommend you look at these before investing.

Of course Golden Power Group 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.