A HK$51m Market Cap Boost Pleasing ToMorris Home Holdings Insiders

Morris Home Holdings Limited (HKG:1575) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 12%, resulting in a HK$51m rise in the company's market capitalisation. Put another way, the original CN¥82m acquisition is now worth CN¥228m.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Morris Home Holdings

The Last 12 Months Of Insider Transactions At Morris Home Holdings

The insider Wing Hong Pang made the biggest insider purchase in the last 12 months. That single transaction was for HK$82m worth of shares at a price of HK$0.063 each. We do like to see buying, but this purchase was made at well below the current price of HK$0.17. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Wing Hong Pang purchased 1.30b shares over the year. The average price per share was HK$0.063. 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!

Morris Home 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 Morris Home Holdings Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Morris Home Holdings insiders own about HK$344m worth of shares (which is 74% 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 Do The Morris Home Holdings Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like Morris Home Holdings insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 5 warning signs for Morris Home Holdings you should be aware of, and 4 of these make us uncomfortable.

Of course Morris Home 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.