Lever Style Insider Confidence Rewarded, Stock Hits HK$543m Market Cap

Lever Style Corporation (HKG:1346) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 10% resulting in a HK$51m addition to the company’s market value. In other words, the original US$2.7m purchase is now worth US$3.2m.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Lever Style

The Last 12 Months Of Insider Transactions At Lever Style

Over the last year, we can see that the biggest insider purchase was by Executive Chairman Chi Yan Szeto for HK$2.7m worth of shares, at about HK$0.71 per share. We do like to see buying, but this purchase was made at well below the current price of HK$0.85. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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).

Lever Style Insiders Are Selling The Stock

The last quarter saw substantial insider selling of Lever Style shares. Specifically, CEO & Executive Director Yuk Mau Chan ditched HK$1.5m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership Of Lever Style

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Lever Style insiders own about HK$34m worth of shares (which is 6.3% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Lever Style Insider Transactions Indicate?

An insider hasn't bought Lever Style stock in the last three months, but there was some selling. But we take heart from prior transactions. We like that insiders own a fair amount of the company. So we're not overly bothered by recent selling. 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. At Simply Wall St, we found 3 warning signs for Lever Style that deserve your attention before buying any shares.

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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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.