Stock Analysis

Insiders In Grown Up Group Investment Holdings Still Down 19% On HK$33m Investment \

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SEHK:1842
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Some of the losses seen by insiders who purchased HK$33m worth of Grown Up Group Investment Holdings Limited (HKG:1842) shares over the past year were recovered after the stock increased by 35% over the past week. The purchase, however, has proven to be a pricey bet, with losses currently totalling HK$6.4m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Grown Up Group Investment Holdings

Grown Up Group Investment Holdings Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Stuart Grimshaw bought HK$33m worth of shares at a price of HK$0.24 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being HK$0.19). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Stuart Grimshaw was the only individual insider to buy during the last year. Notably Stuart Grimshaw was also the biggest seller.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
SEHK:1842 Insider Trading Volume June 4th 2023

Grown Up Group Investment Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insiders At Grown Up Group Investment Holdings Have Sold Stock Recently

The last quarter saw substantial insider selling of Grown Up Group Investment Holdings shares. Specifically, insider Stuart Grimshaw ditched HK$12m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Does Grown Up Group Investment Holdings Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Grown Up Group Investment Holdings insiders own about HK$27m worth of shares (which is 12% of the company). But they may have an indirect interest through a corporate structure that we haven't picked up on. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Grown Up Group Investment Holdings Insiders?

An insider hasn't bought Grown Up Group Investment Holdings stock in the last three months, but there was some selling. In contrast, they appear keener if you look at the last twelve months. We like that insiders own a fair amount of the company. So the recent selling doesn't worry us too much. 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. Case in point: We've spotted 5 warning signs for Grown Up Group Investment Holdings you should be aware of, and 2 of these are significant.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.

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Find out whether Grown Up Group Investment Holdings is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.