Heng Tai Consumables Group Insiders Recover Some Losses, Which Stand At HK$147k

Insiders who bought HK$1.22m worth of Heng Tai Consumables Group Limited (HKG:197) stock in the last year recovered part of their losses as the stock rose by 10% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling HK$147k.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Heng Tai Consumables Group

Heng Tai Consumables Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Yin Man Chow for HK$670k worth of shares, at about HK$0.33 per share. Even though the purchase was made at a significantly lower price than the recent price (HK$0.38), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In the last twelve months Heng Tai Consumables Group insiders were buying shares, but not selling. They paid about HK$0.43 on average. These transactions suggest that insiders have considered the current price attractive. 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 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).

Insiders At Heng Tai Consumables Group Have Bought Stock Recently

Over the last quarter, Heng Tai Consumables Group insiders have spent a meaningful amount on shares. We can see that insider Yin Man Chow paid HK$670k for shares in the company. No-one sold. This could be interpreted as suggesting a positive outlook.

Does Heng Tai Consumables Group Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Heng Tai Consumables Group insiders own about HK$17m worth of shares (which is 44% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Heng Tai Consumables Group Tell Us?

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 Heng Tai Consumables Group. Looks promising! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 2 warning signs for Heng Tai Consumables Group you should be aware of, and 1 of these is a bit concerning.

But note: Heng Tai Consumables Group 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.