Lisi Group (Holdings) Insider Buyers Pleased With CN¥32m Return On Investment

Insiders who bought Lisi Group (Holdings) Limited (HKG:526) in the last 12 months may probably not pay attention to the stock's recent 11% drop. After accounting for the recent loss, the CN¥60.8m worth of shares they purchased is now worth CN¥92.8m, suggesting a good return on their investment.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Lisi Group (Holdings)

The Last 12 Months Of Insider Transactions At Lisi Group (Holdings)

The insider Alexia David made the biggest insider purchase in the last 12 months. That single transaction was for HK$61m worth of shares at a price of HK$0.076 each. We do like to see buying, but this purchase was made at well below the current price of HK$0.12. 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 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Does Lisi Group (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. It's great to see that Lisi Group (Holdings) insiders own 62% of the company, worth about HK$581m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Lisi Group (Holdings) Insider Transactions Indicate?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Lisi Group (Holdings) insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! Along with insider transactions, I recommend checking if Lisi Group (Holdings) is growing revenue. This free chart of historic revenue and earnings should make that easy.

But note: Lisi Group (Holdings) may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 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.