Bullish North Asia Strategic Holdings Insider Buying Worth HK$34.0m Yet To Pay Off

The recent 12% drop in North Asia Strategic Holdings Limited's (HKG:8080) stock could come as a blow to insiders who purchased HK$34.0m worth of stock at an average buy price of HK$0.52 over the past 12 months. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth HK$15.1m, which is not great.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for North Asia Strategic Holdings

The Last 12 Months Of Insider Transactions At North Asia Strategic Holdings

Over the last year, we can see that the biggest insider purchase was by Executive Chairlady & Compliance Officer Yifan Zhang for HK$24m worth of shares, at about HK$0.65 per share. That means that an insider was happy to buy shares at above the current price of HK$0.23. 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. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Yifan Zhang was the only individual insider to buy during the last year.

Yifan Zhang bought 65.68m shares over the last 12 months at an average price of HK$0.52. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

North Asia Strategic Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does North Asia Strategic Holdings Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. North Asia Strategic Holdings insiders own about HK$74m worth of shares (which is 71% of the company). 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 Does This Data Suggest About North Asia Strategic Holdings Insiders?

It doesn't really mean much that no insider has traded North Asia Strategic Holdings shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like North Asia Strategic Holdings insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. While we like knowing 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. Be aware that North Asia Strategic Holdings is showing 3 warning signs in our investment analysis, and 1 of those doesn't sit too well with us...

Of course North Asia Strategic 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.