Insider Buying: The GME Group Holdings Limited (HKG:8188) Executive Director Just Bought HK$136k Worth Of Shares

Whilst it may not be a huge deal, we thought it was good to see that the GME Group Holdings Limited (HKG:8188) Executive Director, Wei Chu Chuang, recently bought HK$136k worth of stock, for HK$0.15 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

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GME Group Holdings Insider Transactions Over The Last Year

In fact, the recent purchase by Wei Chu Chuang was the biggest purchase of GME Group Holdings shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of HK$0.17 per share to be enticing. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the GME Group Holdings insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was Wei Chu Chuang.

Wei Chu Chuang bought 2.36m shares over the last 12 months at an average price of HK$0.14. 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 plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

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. We usually like to see fairly high levels of insider ownership. GME Group Holdings insiders own 64% of the company, currently worth about HK$50m based on the recent share price. 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 Does This Data Suggest About GME Group Holdings Insiders?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about GME Group Holdings. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing GME Group Holdings. For instance, we've identified 4 warning signs for GME Group Holdings (2 shouldn't be ignored) you should be aware of.

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, but not derivative transactions.

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